CHAPTER 16 Recording Adjusting and Closing Entries for a Corporation.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 3 - Journals, Source...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 3 - Journals, Source Chapter 3 - Journals, Source Documents, and Recording Entries Documents, and Recording Entries in a Journal in a Journal Hand out Notes Sheet!!! 1 LESSON 3-1
Transcript of CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 3 - Journals, Source...
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Chapter 3 - Journals, Source Documents, and Chapter 3 - Journals, Source Documents, and Recording Entries in a JournalRecording Entries in a Journal
Hand out Notes Sheet!!!
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LESSON 3-1
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1 Journals, Source Documents, LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journaland Recording Entries in a Journal
Journal – form for recording transactions in chronological order
Journalizing – Recording transactions in a journal
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LESSON 3-1
A GENERAL JOURNALA GENERAL JOURNAL page 57
Entry – information for each transaction recorded in a journalGeneral Journal – a journal with two amount columns in which all kinds of entries can be recorded
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
General Journal Continued…General Journal Continued…
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LESSON 3-1
Double-Entry Accounting – the recording of debit and credit parts of a transactionSource Document – a business paper from which information is obtained for a journal entry. checks, sales invoices, receipts, calculator tape and memorandumsCONCEPT: Objective Evidence – a source document is prepared for each transaction, this proves the transaction occurred.
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LESSON 3-1
CHECKSCHECKS page 58
Check – a business form ordering a bank to pay cash from a bank account, all checks are prenumbered (C#)
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LESSON 3-1
SALES INVOICESSALES INVOICES page 58
Sales Invoice – an invoice used as a source document for recording a sale on account, sales invoices are prenumbered (S#)
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LESSON 3-1
OTHER SOURCE DOCUMENTSOTHER SOURCE DOCUMENTS page 59
memorandummemorandum
calculator tapecalculator tape
receiptreceipt
A business form giving written acknowledgement for cash received (R#)
A form on which a brief message is written describing a transaction (M#)
The total cash sales for the day (T date)
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LESSON 3-1
2. Write the title of the account debited. Write the debit amount.
RECEIVED CASH FROM OWNER AS AN RECEIVED CASH FROM OWNER AS AN INVESTMENTINVESTMENT page 60
August 1. Received cash from owner as an investment, $5,000.00. Receipt No. 1.
1. Write the date in the Date column.
3. Write the title of the account credited, indented. Write the credit amount.
4. Write the source document number in the Doc. No. column.
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22 2233 33
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LESSON 3-1
PAID CASH FOR SUPPLIESPAID CASH FOR SUPPLIES page 61
August 3. Paid cash for supplies, $275.00. Check No. 1.
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1. Write the date in the Date column.
4. Write the source document number in the Doc. No. column.
3. Write the title of the account credited, indented. Write the credit amount.
2. Write the title of the account debited. Write the debit amount.
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LESSON 3-1
TERMS REVIEWTERMS REVIEW
journal journalizing entry general journal double-entry accounting source document
check invoice sales invoice receipt memorandum
page 62
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2LESSON 3-2
Journalizing Buying Insurance, Buying on Account, and Paying on Account
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LESSON 3-2
PAID CASH FOR INSURANCEPAID CASH FOR INSURANCE page 63
August 4. Paid cash for insurance, $1,200.00. Check No. 2.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
1144
22223333
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LESSON 3-2
BOUGHT SUPPLIES ON ACCOUNTBOUGHT SUPPLIES ON ACCOUNT page 64
August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
11 442222
3333
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LESSON 3-2
PAID CASH ON ACCOUNTPAID CASH ON ACCOUNT page 65
August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
11 442222
3333
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-3LESSON 3-3
Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account
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LESSON 3-3
RECEIVED CASH FROM SALESRECEIVED CASH FROM SALES page 68
August 12. Received cash from sales, $295.00. Tape No. 12.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
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LESSON 3-3
SOLD SERVICES ON ACCOUNTSOLD SERVICES ON ACCOUNT page 69
August 12. Sold services on account to Oakdale School, $350.00. Sales Invoice No. 1.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
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LESSON 3-3
PAID CASH FOR AN EXPENSEPAID CASH FOR AN EXPENSE page 70
August 12. Paid cash for rent, $300.00. Check No. 4.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
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LESSON 3-3
RECEIVED CASH ON ACCOUNTRECEIVED CASH ON ACCOUNT page 71
August 18. Received cash on account from Oakdale School, $200.00. Receipt No. 2.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
4411
3333
2222
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LESSON 3-3
PAID CASH TO OWNER FOR PAID CASH TO OWNER FOR PERSONAL USEPERSONAL USE page 72
August 18. Paid cash to owner for personal use, $125.00. Check No. 6.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
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LESSON 3-4LESSON 3-4
Starting a New Journal Page
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LESSON 3-4
A COMPLETED JOURNAL PAGEA COMPLETED JOURNAL PAGE page 74
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LESSON 3-4
STARTING A NEW GENERAL STARTING A NEW GENERAL JOURNAL PAGEJOURNAL PAGE page 75
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LESSON 3-4
STANDARD ACCOUNTING PRACTICESSTANDARD ACCOUNTING PRACTICES page 76
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QuestionsQuestions
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LESSON 3-4
1. When is a general journal page complete?2. If an entire entry is incorrect and is discovered
before the next entry is journalized, how should the incorrect entry be corrected?
3. If several correct entries are recorded after an incorrect entry is made, how should the incorrect entry be corrected?
