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Journalizing Transactions

Journalizing Transactions. Chapter 4. Rule of Thumb. If you enter a number in the general amount column then a account title has to be entered also. SOURCE DOCUMENTS. DEF - A business paper from which information is obtained for a journal entry

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Journalizing Transactions

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  1. Journalizing Transactions Chapter 4

  2. Rule of Thumb • If you enter a number in the general amount column then a account title has to be entered also.

  3. SOURCE DOCUMENTS • DEF - A business paper from which information is obtained for a journal entry • Checks - a form for ordering a bank to pay cash . C1, C2 etc. . . . . . • Calculator Tapes - tapes from the cash register used to record sales for the day or the week. T1,T12 etc. . . . . .

  4. SOURCE DOCUMENTS CON’T • Receipts - a form giving written acknowledgement for cash received. R1,R2,R3 etc. . . . . • Memorandums - a form which gives a brief message describing the transaction. M34, M45 etc. . . . . .

  5. Transactions August 1, 2000 Received cash from owner as an investment $10,000. Receipt No. 1 Cash Ben Furman,Cap 10000 10000

  6. Recording Transactions in a Five Column Journal • Date • Debit • Credit • Source Document

  7. 1 Aug R1 Cash 10000 10000 Barbara Trevino’, Capital

  8. Transactions August 3, 2000 Paid cash for supplies $1,577. Check No. 1 Cash Supplies 1577 1577

  9. 1 Aug R1 Cash 10000 10000 Barbara Trevino’, Capital 3 Supplies C1 1577 Cash 1577

  10. Please try on your own on page 71

  11. Transactions August 4, 2000 paid cash for insurance $1200 Check No. 2 Cash Prepaid Insurance 1200 1200

  12. 1 Aug R1 Cash 10000 10000 Barbara Trevino’, Capital 3 Supplies C1 1577 Cash 1577 4 Prepaid Insurance C2 1200 Cash 1200

  13. Transactions August 7, 2000 Bought supplies on account from Butler Cleaning Supplies, $2720. Memorandum Supplies Butler Cleaning supplies 2720 2720

  14. 1 Aug R1 Cash 10000 10000 Barbara Trevino’, Capital 3 Supplies C1 1577 Cash 1577 4 Prepaid Insurance C2 1200 Cash 1200 7 M1 Supplies 2720 2720 Acct Pay- Butler Cleaning Supplies

  15. Transactions August 11, 2000 Paid cash on account to Butler Cleaning Supply $1360 Check No 3 Cash Butler Cleaning Supply 1360 1360

  16. Transactions August 12, 2000 Received cash form sales $525 Tape No Cash Sales 525 525

  17. Transactions August 12, 2000 Paid cash for Rent $250 Check No 4 Cash Rent Expense 250 250

  18. Transactions August 13, 2000 Paid cash to owner for personal use $100 check No 6 Cash Ben Furman, Drawing 100 100

  19. Standard Accounting practices • Please look at the rules that apply on page 84

  20. Problems for this chapter • On your own page 81 • Problems 4-1,2,3,4,5,6 • Next class We will do the first computer problem together…..Computer problem 4-5

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