Chapter 3 JOURNALIZING TRANSACTIONS 3 1 RECORDING TRANSACTIONS

Chapter 3 JOURNALIZING TRANSACTIONS

3. 1 RECORDING TRANSACTIONS AND THE GENERAL JOURNAL

Journals and Journalizing T-Accounts and accounting equation do not match with amount of transactions & accounts Journal- A form for recording transactions in chronological order Journalizing- Recording transactions in a journal Use journal best for business needs-record entries everyday

In a Journal… Accuracy Chronological Order-By Date Entry-Information for each transaction recorded in a journal Double-Entry Recording- Recording of debit and credit parts of a transaction

Source Documents Business paper from which info is obtained for a journal entry Concept: Objective Evidence-source document for every transaction

Source Documents Check- A business form ordering a bank to pay cash from a bank account ◦ Check ALWAYS used for “paid cash” Invoice – A form describing the goods or services sold, the quantity, the price, and the terms of sale Sales Invoice-used for recording a sale on account-sales ticket or sales slip

Source Documents Receipt-written acknowledgement for cash received Memorandum-Brief message is written to describe a transaction Calculator tapes labeled with T and date

Journal Entries Date Debit Credit Source Document

3. 4 STARING A NEW JOURNAL PAGE

If do not have 2 spaces at bottom of page; start new journal page Write new page number at top of new journal page

Correcting Errors in Journal Entries If entry already journalized-draw lines through incorrect parts Journalize collect entry If only numbers wrong; draw line through numbers and write above