journal: organizing transactions

JOURNAL: Organizing

transactions

Ref: Chapt. 6, p. 157-164 Practice p. 161

A) exercises # 1,2,3, B) exercises # 4,5,6

Journaling Business transactions have been

recorded in ________________called. __________ . This can be cumbersome, and can result in the parts of a transaction being difficult to put back together. Thus accountants use a ________ to record business transactions _______ they are put into the ledger.

Recall: What is double entry accounting?The value of the debit entry ALWAYS equals

the value of the credit entry.

What are the accounts and how are they affected by the following transaction:

Schlecky buys $400 worth of widjits, pays cash

What has happened if your DR does not equal your CR value for a transaction?

Example: Ashley purchases a new delivery truck for her business. The truck costs $37,000. She pays $7000 down payment and puts the rest on credit

DATE PARTICULARS PR DEBIT CREDIT

A journal entry Match the Journal term with the definition

DR CR Double entry

accounting Date PR=Posting

Reference

Account affected by transaction

When transaction occurred Total DR value must equal

to the total CR value Account number Account affected by

transaction

TECHNIQUE OF JOURNALIZINGTECHNIQUE OF JOURNALIZINGTECHNIQUE OF JOURNALIZINGTECHNIQUE OF JOURNALIZING

What is significant about all of the circled info on the General Journal below?

What is significant about all of the circled info on the General Journal below?

GENERAL JOURNAL J1

Date Account Titles and Explanation Ref. Debit Credit2002

Sept. 1 Cash 15,000 M. Doucet, Capital 15,000

Invested cash in business.

1 Equipment 7,000 Cash 7,000

Purchased equipment for cash.


The date of the transaction is entered in the date column.

The date of the transaction is entered in the date column.

GENERAL JOURNAL J1







The debit account title is entered at the extreme left margin of the Account Titles and Explanation column. The credit account title is indented on the next line.

The debit account title is entered at the extreme left margin of the Account Titles and Explanation column. The credit account title is indented on the next line.

GENERAL JOURNAL J1







The amounts for the debits are recorded in the Debit column and the amounts for the credits are recorded in the Credit column.

The amounts for the debits are recorded in the Debit column and the amounts for the credits are recorded in the Credit column.

GENERAL JOURNAL J1







A brief explanation of the transaction is given.A brief explanation of the transaction is given.

GENERAL JOURNAL J1







A space is left between journal entries. The blank space separates individual journal entries and makes the journal easier to read.

A space is left between journal entries. The blank space separates individual journal entries and makes the journal easier to read.

GENERAL JOURNAL J1


Sept. 1 Cash 15,000 M. Doucet, Capital 15,000 Invested cash in business.

1 Equipment 7,000 Cash 7,000 Purchased equipment for cash.


The column entitled Ref. is left blank at the time the journal entry is made and is used later when the journal entries are transferred to the ledger accounts.

The column entitled Ref. is left blank at the time the journal entry is made and is used later when the journal entries are transferred to the ledger accounts.

GENERAL JOURNAL J1


Sept. 1 Cash 15,000 M. Doucet, Capital 15,000 Invested cash in business.

1 Equipment 7,000 Cash 7,000 Purchased equipment for cash.

journal: organizing transactions

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