accounting i chapter 4 - journalizing transactions
TRANSCRIPT
Accounting IAccounting I
Chapter 4 - Journalizing Transactions
TTERMS REVIEWERMS REVIEWjournal
journalizing
special amount column
general amount column
entry
double-entry accounting
Lesson 4-1, page 71Lesson 4-1, page 71
source document
check
invoice
sales invoice
receipt
memorandum
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JournalJournal
A form for recording transactions in chronological order.
Lesson 4-1, page 64Lesson 4-1, page 64
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JournalizingJournalizing
Recording transactions in a journal.
Lesson 4-1, page 64Lesson 4-1, page 64
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Special Amount ColumnSpecial Amount Column
A journal amount column headed with an account title.
Lesson 4-1, page 66Lesson 4-1, page 66
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General Amount ColumnGeneral Amount Column
A journal amount column that is not headed with an account title.
Lesson 4-1, page 64Lesson 4-1, page 64
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EntryEntry
Information for each transaction recorded in a journal.
Lesson 4-1, page 66Lesson 4-1, page 66
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Double-Entry AccountingDouble-Entry Accounting
The recording of debit & credit parts of a transaction. Each transaction affect at least 2 accounts.
Lesson 4-1, page 66Lesson 4-1, page 66
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Source DocumentSource Document
A business paper from which information is obtained for a journal entry.
Lesson 4-1, page 66Lesson 4-1, page 66
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Objective EvidenceObjective Evidence
A source document is prepared for each transaction.
Lesson 4-1, page 66Lesson 4-1, page 66
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CheckCheck
A business form ordering a bank to pay cash from a bank account.
Lesson 4-1, page 67Lesson 4-1, page 67
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InvoiceInvoice
A form describing the goods or services sold, the quantity, and the price.
Lesson 4-1, page 67Lesson 4-1, page 67
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Sales InvoiceSales Invoice
An invoice used as a source document for recording a sale on account.
Lesson 4-1, page 67Lesson 4-1, page 67
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Memorandum (Memo)Memorandum (Memo)
A form on which a brief message is written describing a transaction.
Lesson 4-1, page 68Lesson 4-1, page 68
A FIVE-COLUMN JOURNALA FIVE-COLUMN JOURNAL
Lesson 4-1, page 66Lesson 4-1, page 66
CHECKSCHECKS
Lesson 4-1, page 67Lesson 4-1, page 67
SALES INVOICESSALES INVOICES
Lesson 4-1, page 67Lesson 4-1, page 67
OTHER SOURCE DOCUMENTSOTHER SOURCE DOCUMENTS
Lesson 4-1, page 68Lesson 4-1, page 68
RECEIVED CASH FROM OWNER AS AN INVESTMENTRECEIVED CASH FROM OWNER AS AN INVESTMENT
Lesson 4-1, page 69Lesson 4-1, page 69
August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1.
RECEIVED CASH FROM OWNER AS AN INVESTMENTRECEIVED CASH FROM OWNER AS AN INVESTMENT
Lesson 4-1, page 69Lesson 4-1, page 69
August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1.
1. Which accounts are affected?
Cash
Barbara Treviño, Capital
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Owner’s equity accounts increase on the credit side.
3. How is each classification changed?
Assets are increased.
Owner’s equity is increased.
2. How is each account classified?
Cash is an asset account.
Barbara Treviño, Capital is an owner’s equity account.Barbara Treviño, Capital
Cash
DebitNormal Balance
CreditNormal Balance
10,000.00
10,000.00
RECEIVED CASH FROM OWNER AS AN INVESTMENTRECEIVED CASH FROM OWNER AS AN INVESTMENT
Lesson 4-1, page 69Lesson 4-1, page 69
August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1.
1. Write the date.
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4. Write the source document number.
2. Debit Cash.
3. Credit Barbara Treviño, Capital.
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3
3. Credit Cash.
PAID CASH FOR SUPPLIESPAID CASH FOR SUPPLIES
Lesson 4-1, page 70Lesson 4-1, page 70
1. Write the date.
4. Write the source document number.
2. Debit Supplies.
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PAID CASH FOR INSURANCEPAID CASH FOR INSURANCE
Lesson 4-2, page 72Lesson 4-2, page 72
August 4. Paid cash for insurance, $1,200.00. Check No. 2.
1. Which accounts are affected?
Prepaid Insurance
Cash
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
3. How is each classification changed?
Assets are increased.
Assets are decreased.
2. How is each account classified?
Prepaid Insurance is as asset account.
Cash is as asset account.
Cash
Prepaid Insurance
DebitNormal Balance
1,200.00
1,200.00DebitNormal Balance
PAID CASH FOR INSURANCE PAID CASH FOR INSURANCE (continued)(continued)
Lesson 4-2, page 72Lesson 4-2, page 72
August 4. Paid cash for insurance, $1,200.00. Check No. 2.
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1. Write the date.
2. Debit Prepaid Insurance.
3. Credit Cash.
4. Write the source document number.
2
PAID CASH ON ACCOUNTPAID CASH ON ACCOUNT
Lesson 4-2, page 74Lesson 4-2, page 74
August 11. Paid cash on account to Ling Music Supplies, $1,360.00, Check No. 3.
1. Which accounts are affected?
Accounts Payable—Ling Music Supplies
Cash
4. How is each amount entered in the accounts?
Liabilities decrease on the debit side.
Assets decrease on the credit side.
3. How is each classification changed?
Liabilities are decreased.
Assets are decreased.
2. How is each account classified?
Accts. Pay.—Ling Music Supplies is a liability account.
Cash is an asset account. Cash
Accts. Pay.—Ling Music Supplies
CreditNormal Balance1,360.00
1,360.00DebitNormal Balance
PAID CASH ON ACCOUNT PAID CASH ON ACCOUNT (continued)(continued)
Lesson 4-2, page 74Lesson 4-2, page 74
August 11. Paid cash on account to Ling Music Supplies, $1,360.00, Check No. 3.
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1. Write the date.
2. Debit Accounts Payable—Ling Music Supplies.
3. Credit Cash.
4. Write the source document number.
2
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RECEIVED CASH FROM SALESRECEIVED CASH FROM SALES
Lesson 4-3, page 76Lesson 4-3, page 76
August 12. Received cash from sales, $325.00. Tape No. 12.
1. Which accounts are affected?
Cash
Sales
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Revenues increase on the credit side.
3. How is each classification changed?
Assets are increased.
Revenues are increased.
2. How is each account classified?
Cash is as asset account.
Sales is as revenue account.
Sales
Cash
DebitNormal Balance
325.00
325.00
CreditNormal Balance
RECEIVED CASH FROM SALES RECEIVED CASH FROM SALES (continued)(continued)
Lesson 4-3, page 76Lesson 4-3, page 76
August 12. Received cash from sales, $325.00. Tape No. 12.
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1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
3
SOLD SERVICES ON ACCOUNTSOLD SERVICES ON ACCOUNT
Lesson 4-3, page 77Lesson 4-3, page 77
August 12. Sold services on account to Kids Time, $200.00. Sales Invoice No. 1.
1. Which accounts are affected?
Accounts Receivable—Kids Time
Sales
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Revenues increase on the credit side.
3. How is each classification changed?
Assets are increased.
Revenues are increased.
2. How is each account classified?
Accounts Receivable—Kids Time is an asset account.
Sales is as revenue account.
Sales
Accounts Rec.—Kids Time
DebitNormal Balance
200.00
200.00
CreditNormal Balance
SOLD SERVICES ON ACCOUNT SOLD SERVICES ON ACCOUNT (continued)(continued)
Lesson 4-3, page 77Lesson 4-3, page 77
August 12. Sold services on account to Kids Time, $200.00. Sales Invoice No. 1.
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1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
2
PAID CASH FOR AN EXPENSEPAID CASH FOR AN EXPENSE
Lesson 4-3, page 78Lesson 4-3, page 78
August 12. Paid cash for rent, $250.00. Check No. 4.
1. Which accounts are affected?
Rent Expense
Cash
4. How is each amount entered in the accounts?
Expenses increase on the debit side.
Assets decrease on the credit side.
3. How is each classification changed?
Expenses are increased.
Assets are decreased.
2. How is each account classified?
Rent Expense is an expense account.
Cash is an asset account. Cash
Rent Expense
DebitNormal Balance
250.00
250.00DebitNormal Balance
PAID CASH FOR AN EXPENSE PAID CASH FOR AN EXPENSE (continued)(continued)
Lesson 4-3, page 78Lesson 4-3, page 78
August 12. Paid cash for rent, $250.00. Check No. 4.
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1. Write the date.
2. Debit Rent Expense.
3. Credit Cash.
4. Write the source document number.
2
RECEIVED CASH ON ACCOUNTRECEIVED CASH ON ACCOUNT
Lesson 4-3, page 79Lesson 4-3, page 79
August 12. Received cash on account from Kids Time, $100.00. Receipt No. 2.
1. Which accounts are affected?
Cash
Accounts Receivable—Kids Time
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
3. How is each classification changed?
Assets are increased.
Assets are decreased.
2. How is each account classified?
Cash is an asset account.
Accounts Rec.—Kids Time is an asset account.
Accounts Rec.—Kids Time
Cash
DebitNormal Balance
100.00
100.00
DebitNormal Balance
RECEIVED CASH ON ACCOUNT RECEIVED CASH ON ACCOUNT (continued)(continued)
Lesson 4-3, page 79Lesson 4-3, page 79
August 12. Received cash on account from Kids Time, $100.00. Receipt No. 2.
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1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
3
PAID CASH TO OWNER FOR PERSONAL USEPAID CASH TO OWNER FOR PERSONAL USE
Lesson 4-3, page 80Lesson 4-3, page 80
August 12. Paid cash to owner for personal use, $100.00. Check No. 6.
1. Which accounts are affected?
Barbara Treviño, Drawing
Cash
4. How is each amount entered in the accounts?
Owner’s equity accounts decrease on the debit side.
Assets decrease on the credit side.
3. How is each classification changed?
Withdrawals are increased. (This results in a decrease in owner’s equity.)
Assets are decreased.
2. How is each account classified?
Barbara Treviño, Drawing is an owner’s equity account.
Cash is an asset account.
Cash
Barbara Treviño, Drawing
DebitNormal Balance
DebitNormal Balance
100.00
100.00
PAID CASH TO OWNER FOR PERSONAL USEPAID CASH TO OWNER FOR PERSONAL USE
Lesson 4-3, page 80Lesson 4-3, page 80
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August 12. Paid cash to owner for personal use, $100.00. Check No. 6.
1. Write the date.
2. Debit Barbara Treviño, Drawing.
3. Credit Cash.
4. Write the source document number.
2
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TTERMS REVIEWERMS REVIEWproving cash
Lesson 4-4, page 87Lesson 4-4, page 87
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Proving CashProving Cash
Determining that the amount of cash agrees with the accounting records.
Lesson 4-4, page 85Lesson 4-4, page 85
Column Debit Column Totals Credit Column Totals
General $ 7,960.00 $12,840.00
Sales 2,439.00
Cash 12,319.00 5,000.00
1
Totals $20,279.00 $20,279.00
2
PROVING A JOURNAL PAGEPROVING A JOURNAL PAGE
Lesson 4-4, page 82Lesson 4-4, page 82
1. Add each amount column.
3
2. Add debit column totals, and then add the credit column totals.
3. Verify that the total debits and total credits are equal.
RULING A JOURNAL PAGERULING A JOURNAL PAGE
Lesson 4-4, page 83Lesson 4-4, page 83
1. Rule a single line.
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4. Write each column total.
5. Rule double lines.
3. Write Carried Forward.
2. Write the date.
3. Write Brought Forward and place a check mark in the Post. Ref. column.
STARTING A NEW JOURNAL PAGESTARTING A NEW JOURNAL PAGE
Lesson 4-4, page 84Lesson 4-4, page 84
1. Write the page number.
1
2
4
4. Record the column totals brought forward from the previous page.
2. Write the date.
3
Column Debit Column Totals Credit Column Totals
General $ 8,979.00 $12,840.00
Sales 4,411.00
Cash 14,291.00 6,019.00
1
Totals $23,270.00 $23,270.00
2
PROVING A JOURNAL AT THE END OF A MONTHPROVING A JOURNAL AT THE END OF A MONTH
Lesson 4-4, page 84Lesson 4-4, page 84
1. Add each amount column.
3
2. Add debit column totals, and then add the credit column totals.
3. Verify that the total debits and total credits are equal.
RULING A JOURNAL AT THE END OF A MONTHRULING A JOURNAL AT THE END OF A MONTH
Lesson 4-4, page 84Lesson 4-4, page 84
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4
1. Rule a single line.
4. Write each column total.
5. Rule double lines.
3. Write Totals.
2. Write the date.
STANDARD ACCOUNTING PRACTICESSTANDARD ACCOUNTING PRACTICES
Lesson 4-4, page 86Lesson 4-4, page 86
5 1
3
42
6
89
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