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Accounting I

Accounting I. Chapter 4 - Journalizing Transactions. T ERMS REVIEW. journal journalizing special amount column general amount column entry double-entry accounting. source document check invoice sales invoice receipt memorandum. Lesson 4-1, page 71. T ERMS REVIEW. Journal.

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Accounting I

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  1. Accounting I Chapter 4 - Journalizing Transactions

  2. TERMS REVIEW journal journalizing special amount column general amount column entry double-entry accounting source document check invoice sales invoice receipt memorandum Lesson 4-1, page 71

  3. TERMS REVIEW Journal A form for recording transactions in chronological order. Lesson 4-1, page 64

  4. TERMS REVIEW Journalizing Recording transactions in a journal. Lesson 4-1, page 64

  5. TERMS REVIEW Special Amount Column A journal amount column headed with an account title. Lesson 4-1, page 66

  6. TERMS REVIEW General Amount Column A journal amount column that is not headed with an account title. Lesson 4-1, page 64

  7. TERMS REVIEW Entry Information for each transaction recorded in a journal. Lesson 4-1, page 66

  8. TERMS REVIEW Double-Entry Accounting The recording of debit & credit parts of a transaction. Each transaction affect at least 2 accounts. Lesson 4-1, page 66

  9. TERMS REVIEW Source Document A business paper from which information is obtained for a journal entry. Lesson 4-1, page 66

  10. TERMS REVIEW Objective Evidence A source document is prepared for each transaction. Lesson 4-1, page 66

  11. TERMS REVIEW Check A business form ordering a bank to pay cash from a bank account. Lesson 4-1, page 67

  12. TERMS REVIEW Invoice A form describing the goods or services sold, the quantity, and the price. Lesson 4-1, page 67

  13. TERMS REVIEW Sales Invoice An invoice used as a source document for recording a sale on account. Lesson 4-1, page 67

  14. TERMS REVIEW Memorandum (Memo) A form on which a brief message is written describing a transaction. Lesson 4-1, page 68

  15. A FIVE-COLUMN JOURNAL Lesson 4-1, page 66

  16. CHECKS Lesson 4-1, page 67

  17. SALES INVOICES Lesson 4-1, page 67

  18. OTHER SOURCE DOCUMENTS Lesson 4-1, page 68

  19. RECEIVED CASH FROM OWNER AS AN INVESTMENT August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1. Lesson 4-1, page 69

  20. Cash Barbara Treviño, Capital RECEIVED CASH FROM OWNER AS AN INVESTMENT August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1. 1. Which accounts are affected? Cash Barbara Treviño, Capital Debit Normal Balance 10,000.00  2. How is each account classified? Cash is an asset account. Barbara Treviño, Capital is an owner’s equity account. Credit Normal Balance 3. How is each classification changed? Assets are increased. Owner’s equity is increased. 10,000.00  4. How is each amount entered in the accounts? Assets increase on the debit side. Owner’s equity accounts increase on the credit side. Lesson 4-1, page 69

  21. 1 2 4 3 3 RECEIVED CASH FROM OWNER AS AN INVESTMENT August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1. 1. Write the date. 2. Debit Cash. 3. Credit Barbara Treviño, Capital. 4. Write the source document number. Lesson 4-1, page 69

  22. 1 2 4 2 3 PAID CASH FOR SUPPLIES 1. Write the date. 2. Debit Supplies. 3. Credit Cash. 4. Write the source document number. Lesson 4-1, page 70

  23. Work Together & On Your Own – Page 71

  24. Prepaid Insurance Cash PAID CASH FOR INSURANCE August 4. Paid cash for insurance, $1,200.00. Check No. 2. 1. Which accounts are affected? Prepaid Insurance Cash Debit Normal Balance 1,200.00  2. How is each account classified? Prepaid Insurance is as asset account. Cash is as asset account. 3. How is each classification changed? Assets are increased. Assets are decreased. 1,200.00 Debit Normal Balance  4. How is each amount entered in the accounts? Assets increase on the debit side. Assets decrease on the credit side. Lesson 4-2, page 72

  25. 2 PAID CASH FOR INSURANCE (continued) August 4. Paid cash for insurance, $1,200.00. Check No. 2. 3 1 4 1. Write the date. 2. Debit Prepaid Insurance. 3. Credit Cash. 4. Write the source document number. Lesson 4-2, page 72

  26. Accts. Pay.—Ling Music Supplies Cash PAID CASH ON ACCOUNT August 11. Paid cash on account to Ling Music Supplies, $1,360.00, Check No. 3. 1. Which accounts are affected? Accounts Payable—Ling Music Supplies Cash 1,360.00 Credit Normal Balance  2. How is each account classified? Accts. Pay.—Ling Music Suppliesis a liability account. Cash is an asset account. 3. How is each classification changed? Liabilities are decreased. Assets are decreased. 1,360.00 Debit Normal Balance  4. How is each amount entered in the accounts? Liabilities decrease on the debit side. Assets decrease on the credit side. Lesson 4-2, page 74

  27. 2 PAID CASH ON ACCOUNT (continued) August 11. Paid cash on account to Ling Music Supplies, $1,360.00, Check No. 3. 3 1 4 1. Write the date. 2. Debit Accounts Payable—Ling Music Supplies. 3. Credit Cash. 4. Write the source document number. Lesson 4-2, page 74

  28. Work Together & On Your Own – Page 75

  29. Cash Sales RECEIVED CASH FROM SALES August 12. Received cash from sales, $325.00. Tape No. 12. 1. Which accounts are affected? Cash Sales Debit Normal Balance 325.00  2. How is each account classified? Cash is as asset account. Sales is as revenue account. 3. How is each classification changed? Assets are increased. Revenues are increased. Credit Normal Balance 325.00  4. How is each amount entered in the accounts? Assets increase on the debit side. Revenues increase on the credit side. Lesson 4-3, page 76

  30. 3 RECEIVED CASH FROM SALES (continued) August 12. Received cash from sales, $325.00. Tape No. 12. 1 2 4 1. Write the date. 2. Debit Cash. 3. Credit Sales. 4. Write the source document number. Lesson 4-3, page 76

  31. Accounts Rec.—Kids Time Sales SOLD SERVICES ON ACCOUNT August 12. Sold services on account to Kids Time, $200.00. Sales Invoice No. 1. 1. Which accounts are affected? Accounts Receivable—Kids Time Sales Debit Normal Balance 200.00  2. How is each account classified? Accounts Receivable—Kids Time is an asset account. Sales is as revenue account. Credit Normal Balance 3. How is each classification changed? Assets are increased. Revenues are increased. 200.00  4. How is each amount entered in the accounts? Assets increase on the debit side. Revenues increase on the credit side. Lesson 4-3, page 77

  32. 2 SOLD SERVICES ON ACCOUNT (continued) August 12. Sold services on account to Kids Time, $200.00. Sales Invoice No. 1. 1 4 3 1. Write the date. 2. Debit Cash. 3. Credit Sales. 4. Write the source document number. Lesson 4-3, page 77

  33. Rent Expense Cash PAID CASH FOR AN EXPENSE August 12. Paid cash for rent, $250.00. Check No. 4. 1. Which accounts are affected? Rent Expense Cash Debit Normal Balance 250.00  2. How is each account classified? Rent Expenseis an expense account. Cash is an asset account. 3. How is each classification changed? Expenses are increased. Assets are decreased. 250.00 Debit Normal Balance  4. How is each amount entered in the accounts? Expenses increase on the debit side. Assets decrease on the credit side. Lesson 4-3, page 78

  34. 2 PAID CASH FOR AN EXPENSE (continued) August 12. Paid cash for rent, $250.00. Check No. 4. 3 1 4 1. Write the date. 2. Debit Rent Expense. 3. Credit Cash. 4. Write the source document number. Lesson 4-3, page 78

  35. Cash Accounts Rec.—Kids Time RECEIVED CASH ON ACCOUNT August 12. Received cash on account from Kids Time, $100.00. Receipt No. 2. 1. Which accounts are affected? Cash Accounts Receivable—Kids Time Debit Normal Balance 100.00  2. How is each account classified? Cash is an asset account. Accounts Rec.—Kids Time is an asset account. 3. How is each classification changed? Assets are increased. Assets are decreased. Debit Normal Balance 100.00  4. How is each amount entered in the accounts? Assets increase on the debit side. Assets decrease on the credit side. Lesson 4-3, page 79

  36. 3 RECEIVED CASH ON ACCOUNT (continued) August 12. Received cash on account from Kids Time, $100.00. Receipt No. 2. 1 2 4 1. Write the date. 2. Debit Cash. 3. Credit Sales. 4. Write the source document number. Lesson 4-3, page 79

  37. Barbara Treviño, Drawing Cash PAID CASH TO OWNER FOR PERSONAL USE August 12. Paid cash to owner for personal use, $100.00. Check No. 6. 1. Which accounts are affected? Barbara Treviño, Drawing Cash Debit Normal Balance 100.00 2. How is each account classified? Barbara Treviño, Drawing is an owner’s equity account. Cash is an asset account.  Debit Normal Balance 3. How is each classification changed? Withdrawals are increased. (This results in a decrease in owner’s equity.) Assets are decreased. 100.00  4. How is each amount entered in the accounts? Owner’s equity accounts decrease on the debit side. Assets decrease on the credit side. Lesson 4-3, page 80

  38. 2 PAID CASH TO OWNER FOR PERSONAL USE August 12. Paid cash to owner for personal use, $100.00. Check No. 6. 1 4 3 1. Write the date. 2. Debit Barbara Treviño, Drawing. 3. Credit Cash. 4. Write the source document number. Lesson 4-3, page 80

  39. Work Together & On Your Own – Page 81

  40. TERMS REVIEW proving cash Lesson 4-4, page 87

  41. TERMS REVIEW Proving Cash Determining that the amount of cash agrees with the accounting records. Lesson 4-4, page 85

  42. 2 Column Debit Column Totals Credit Column Totals General $ 7,960.00 $12,840.00 Sales 2,439.00 Cash 12,319.00 5,000.00 1 3 Totals $20,279.00 $20,279.00     PROVING A JOURNAL PAGE 1. Add each amount column. 2. Add debit column totals, and then add the credit column totals. 3. Verify that the total debits and total credits are equal. Lesson 4-4, page 82

  43. 4 RULING A JOURNAL PAGE 1 5 2 3 1. Rule a single line. 2. Write the date. 3. Write Carried Forward. 4. Write each column total. 5. Rule double lines. Lesson 4-4, page 83

  44. 3 4 STARTING A NEW JOURNAL PAGE 1 2 1. Write the page number. 2. Write the date. 3. Write Brought Forward and place a check mark in the Post. Ref. column. 4. Record the column totals brought forward from the previous page. Lesson 4-4, page 84

  45. 2 Column Debit Column Totals Credit Column Totals General $ 8,979.00 $12,840.00 Sales 4,411.00 Cash 14,291.00 6,019.00 1 3 Totals $23,270.00 $23,270.00     PROVING A JOURNAL AT THE END OF A MONTH 1. Add each amount column. 2. Add debit column totals, and then add the credit column totals. 3. Verify that the total debits and total credits are equal. Lesson 4-4, page 84

  46. 4 RULING A JOURNAL AT THE END OF A MONTH 1 5 3 2 1. Rule a single line. 2. Write the date. 3. Write Totals. 4. Write each column total. 5. Rule double lines. Lesson 4-4, page 84

  47. STANDARD ACCOUNTING PRACTICES 1 4 5 2 3 6 7 8 9 Lesson 4-4, page 86

  48. Work Together & On Your Own – Page 87

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