Accounting Chapter 4 Journalizing Transactions

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Accounting - Chapter 4Journalizing Transactions
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A Journal

• Journal
• a form for recording transactions in
  chronological order
• Journalizing
• the process of recording transactions in a
  journal
• Journal Form
• the type depends on the business
• Encore Music uses a five-column journal
• Special Amount Column - A journal column headed
  with an account title
• cash debit, cash credit, sales credit
• General Amount Column - A journal column that is
  not headed with an account title
• general debit and general credit

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A Journal Continued...

• Accuracy
• Information from the journal is verified against
  the source documents to check for accuracy
• Chronological Order
• transactions are recorded in a journal by date
• Double-Entry Accounting
• Entry - information for each transaction recorded
  in a journal
• Double-entry accounting - each transaction
  affects at least two accounts

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Source Documents

• A business paper from which information is
  obtained for a journal entry
• Concept Objective Evidence
• Checks
• a business form ordering a bank to pay cash from
  a bank account
• The source document for all cash payments
• Calculator Tapes
• The source document for sales
• This is printed from the cash register and shows
  the total sales for the day
• Sales are recorded only once a day

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Source Documents Continued...

• Receipts
• a business form giving written acknowledgement
  for cash received
• This is the source document for cash received
  from sources other than sales
• Memorandum
• a form on which a brief message is written
  describing a transaction
• A memorandum is used when no other source
  document is prepared for a transaction

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Recording Transactions in a Five-Column Journal

• Each entry into a journal will consist of four
  parts
• The date
• A debit
• A credit
• The source document