Accounting Lesson 3-1

1 Lesson 3-110/7/2008 GREEN1 century 21 Accounting Thomson/South-WesternLESSON 3 Lesson 3--11 Journals, Source Documents, and Recording Entries in a JournalCENTURY 21 Accounting Thomson/South-Western2 Lesson 3-1 Advantages of Using a JournalAdvantages of Using a Journal Accuracy- journal includes debit and credit parts of each transaction recorded in ONE place Chronological Order transactions are recorded in a journal in order by date Double-Entry Accounting both the debit and credit amounts are recorded assures debits equal creditsLESSON 3-110/7/2008 GREEN2 century 21 Accounting Thomson/South-Western3 Lesson 3-1A GENERAL JOURNALA GENERAL JOURNAL page 57 century 21 Accounting Thomson/South-Western4 Lesson 3-1 CONCEPT:CONCEPT: Objective Evidence: A source document is prepared for each transactionLESSON 3-110/7/2008 GREEN3 century 21 Accounting Thomson/South-Western5 Lesson 3-1 Source Document Source Document -- CheckCheckpage 58 Used for all cash paymentsCENTURY 21 Accounting Thomson/South-Western6 Lesson 3-1 Source Document Source Document Sales InvoiceSales Invoicepage 58 Used for recording a sale on accountLESSON 3-110/7/2008 GREEN4 century 21 Accounting Thomson/South-Western7 Lesson 3-1 Source Document Source Document -- ReceiptReceiptpage 59receiptUsed when cash is received from sources other than sales such as.

2 The owner makes an investmentCENTURY 21 Accounting Thomson/South-WesternSource Document Source Document -- TapeTape8 Lesson 3-1 Used to record daily or weekly cash sales transactionscalculator tapeor terminal summary tapeLESSON 3-110/7/2008 GREEN5 century 21 Accounting Thomson/South-WesternSource Document Source Document -- MemorandumMemorandum9 Lesson 3-1 Used when no other source document is prepared or when an additional explanation is needed about a transactionmemorandumCENTURY 21 Accounting Thomson/South-Western10 Lesson 3-1 Journalizing Transactions Journalizing Transactions ProceduresProcedures Record the month and year ONCE on each page of the journal Record the day for EVERY transaction (even if it is the same day as the previous transaction) Record the debit account FIRST Then, INDENT and record the credit account on the next line Record the source document ONCE for each transaction Make sure a debit and credit amount are recorded for each transaction and that they equalLESSON 3-110/7/2008 GREEN6 century 21 Accounting Thomson/South-Western11 Lesson 3-12.

3 Write the title of the account debited. Write the debit CASH FROM OWNER AS AN RECEIVED CASH FROM OWNER AS AN INVESTMENTINVESTMENT page 60 August 1. Received cash from owner as an investment, $5, Receipt No. Write the date in the Date Write the title of the account credited. Write the credit Write the source document number in the Doc. No. 21 Accounting Thomson/South-Western12 Lesson 3-1 PAID CASH FOR SUPPLIESPAID CASH FOR SUPPLIES page 61 August 3. Paid cash for supplies, $ Check No. Write the date in the Date Write the source document number in the Doc. No. Write the title of the account credited. Write the credit Write the title of the account debited. Write the debit 3-110/7/2008 GREEN7 century 21 Accounting Thomson/South-Western13 Lesson 3-1 TERMS REVIEWTERMS REVIEW journal journalizing entry general journal double-entry Accounting source document check invoice sales invoice receipt memorandumpage 62