CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Chapter 5Chapter 5

Journals, Source Documents, and Recording Entries in a Journal

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

A FIVE-COLUMN JOURNALA FIVE-COLUMN JOURNAL

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

CHECKSCHECKS

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

OTHER SOURCE DOCUMENTSOTHER SOURCE DOCUMENTS

memorandummemorandum

calculator tapecalculator tape

receiptreceipt

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

RECEIVED CASH FROM OWNER AS AN RECEIVED CASH FROM OWNER AS AN INVESTMENTINVESTMENT

August 1. Received cash from owner as an investment, $5,000.00. Receipt No. 1.

1. Write the date in the Date column.

2. Write the debit amount in the Cash Debit column.

3. Record the credit amount in the General Credit column. Write the title of the account in the Account Title column.

4. Write the source document number in the Doc. No. column.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PAID CASH FOR SUPPLIESPAID CASH FOR SUPPLIES page 61

August 3. Paid cash for supplies, $275.00. Check No. 1.

1. Write the date in the Date column.

2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column.

3. Write the credit amount in the Cash Credit column.

4. Write the source document number in the Doc. No. column.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Journalizing Buying Insurance, Buying on Account, and Paying on Account

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PAID CASH FOR INSURANCEPAID CASH FOR INSURANCE

August 4. Paid cash for insurance, $1,200.00. Check No. 2.

1. Write the date in the Date column.

2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column.

3. Write the credit amount in the Cash Credit column.

4. Write the source document number in the Doc. No. column.

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332222

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

BOUGHT SUPPLIES ON ACCOUNTBOUGHT SUPPLIES ON ACCOUNT

August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1.

1. Write the date in the Date column.2. Record the debit amount in the General Debit

column. Write the title of the account in the Account Title column.

3. Record the credit amount on the next line in the General Credit column. Write the title of the account in the Account Title column.

4. Write the source document number in the Doc. No. column on the first line of the entry.

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3333

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PAID CASH ON ACCOUNTPAID CASH ON ACCOUNT

August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3.

1. Write the date in the Date column.

2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column.

3. Write the credit amount in the Cash Credit column.

4. Write the source document number in the Doc. No. column.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

RECEIVED CASH FROM SALESRECEIVED CASH FROM SALES

August 12. Received cash from sales, $295.00. Tape No. 12.

1. Write the date in the Date column.

2. Write the debit amount in the Cash Debit column.

3. Write the credit amount in the Sales Credit column. Place a check mark in the Account Title column. A check mark is also placed in the Post. Ref. column.

4. Write the source document number in the Doc. No. column.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PAID CASH FOR AN EXPENSEPAID CASH FOR AN EXPENSE

August 12. Paid cash for rent, $300.00. Check No. 4.

1. Write the date in the Date column.

2. Write the debit amount in the General Debit column. Write the title of the account in the Account Title column.

3. Write the credit amount in the Cash Credit column.

4. Write the source document number in the Doc. No. column.

4411 332222

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PAID CASH TO OWNER FOR PAID CASH TO OWNER FOR PERSONAL USEPERSONAL USE

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 debit amount in the General Debit column. Write the title of the account in the Account Title column.

3. Write the credit amount in the Cash Credit column.

4. Write the source document number in the Doc. No. column.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Proving and Ruling a Journal

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

RULING A JOURNAL PAGERULING A JOURNAL PAGE

5. Rule double lines.

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1. Rule a single line.

2. Write the date.

3. Write Carried Forward.

4. Write each column total.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PROVING A JOURNAL PAGEPROVING A JOURNAL PAGE

1. Add each of the amount columns.

2. Add the debit column totals, and then add the credit column totals.

3. Verify that the total debits and total credits are equal.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

STARTING A NEW JOURNAL PAGESTARTING A NEW JOURNAL PAGE

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441. Write the page number.

2. Write the date.

3. Write Brought Forward in the Account Title column. A check mark is also placed in the Post. Ref. column.

4. Record the column totals brought forward from the previous page.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PROVING AND RULING A JOURNAL AT PROVING AND RULING A JOURNAL AT THE END OF A MONTHTHE END OF A MONTH

5. Rule double lines.

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1. Rule a single line.

2. On the next line, write the date.

3. Write the word Totals.

4. Write each column total.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

STANDARD ACCOUNTING PRACTICESSTANDARD ACCOUNTING PRACTICES

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