Ch 9 Journalizing Purchases and Cash Payments - pdfMachine ...
Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order....
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Transcript of Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order....
![Page 1: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/1.jpg)
Chapter 6 - Journalizing
![Page 2: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/2.jpg)
Book of original entry.
Transactions recorded in chronological order.
Purpose of the Journal:
1. Shows the complete effects of a transaction.
2. Provides a chronological record of transactions.
3. Helps to prevent or locate errors because the debit and credit amounts can be easily compared.
The JournalThe Journal
SO 4 Explain what a journal is and how it helps in the recording SO 4 Explain what a journal is and how it helps in the recording process.process.
![Page 3: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/3.jpg)
Chapter 6.1
16
• Enter the date
Recording Journal Entries
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Chapter 6.1
16Date
99Nov.Nov.20—20—
![Page 5: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/5.jpg)
Chapter 6.1
16Step 2
99Nov.Nov.20—20—
• Enter the debit account(s)
![Page 6: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/6.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies
![Page 7: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/7.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies
• Enter the debit amount(s)
Step 3
![Page 8: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/8.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Enter Debit Amounts
![Page 9: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/9.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
• Indent and enter the credit account(s)
Step 4
![Page 10: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/10.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank
Enter Credit Accounts
![Page 11: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/11.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank
• Enter the credit amount(s)
Step 5
![Page 12: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/12.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Enter Credit Amounts
![Page 13: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/13.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
• Write a brief explanation (at left margin)
Step 6
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Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
Write Explanation
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Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
• Skip a line and complete next entry
Skip a line
![Page 16: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/16.jpg)
Chapter 6.1
16
1 3 5 –
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank
Letterhead and envelopes; cheque #40
12
Record the Next Entry
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Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
12 Equipment
Record the Next Entry
![Page 18: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/18.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
12 Equipment 12 0 0 0 –
Record the Next Entry
![Page 19: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/19.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
12 Equipment 12 0 0 0 –
A/P—World Wide Fibre Optics
Record the Next Entry
![Page 20: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/20.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
12 Equipment 12 0 0 0 –
A/P—World Wide Fibre Optics 10 0 0 0 –
Record the Next Entry
![Page 21: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/21.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
12 Equipment 12 0 0 0 –
A/P—World Wide Fibre Optics 10 0 0 0 –
Bank
Record the Next Entry
![Page 22: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/22.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
12 Equipment 12 0 0 0 –
A/P—World Wide Fibre Optics 10 0 0 0 –
Bank 2 0 0 0 –
Record the Next Entry
![Page 23: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/23.jpg)
Chapter 6.1
16
99Nov.Nov.20—20—
Supplies 1 3 5 –
Bank 1 3 5 –
Letterhead and envelopes; cheque #40
12 Equipment 12 0 0 0 –
A/P—World Wide Fibre Optics 10 0 0 0 –
Bank 2 0 0 0 –
Network software installation; issued cheque
#41 with the balance due in 30 days.
Record the Next Entry
![Page 24: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/24.jpg)
Chapter 6.1
16
Supplies 1 3 5 –
Bank
Letterhead and envelopes; cheque #40
12 Equipment
A/P—World Wide Fibre Optics
Network software installation; issued cheque
#41 with the balance due in 30 days.
12 0 0 0 –
Bank
10 0 0 0 –
2 0 0 0 –
1 3 5 –
99Nov.Nov.20—20—
• Consecutive page numbers
Page Numbers
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Chapter 6.1
16
Supplies 1 3 5 –
Bank
Letterhead and envelopes; cheque #40
12 Equipment
A/P—World Wide Fibre Optics
Network software installation; issued cheque
#41 with the balance due in 30 days.
12 0 0 0 –
Bank
10 0 0 0 –
2 0 0 0 –
1 3 5 –
99Nov.Nov.20—20—
• Each journal entry balances
Balanced Entries
![Page 26: Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order. Purpose of the Journal: 1. Shows the complete effects.](https://reader035.fdocuments.net/reader035/viewer/2022062421/56649d3b5503460f94a16416/html5/thumbnails/26.jpg)
Chapter 6.1
16
Supplies 1 3 5 –
Bank
Letterhead and envelopes; cheque #40
12 Equipment
A/P—World Wide Fibre Optics
Network software installation; issued cheque
#41 with the balance due in 30 days.
12 0 0 0 –
Bank
10 0 0 0 –
2 0 0 0 –
1 3 5 –
99Nov.Nov.20—20—
• A “compound entry” affects more than two accounts
Compound Entries
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Chapter 6.1
16
Supplies 1 3 5 –
Bank
Letterhead and envelopes; cheque #40
12 Equipment
A/P—World Wide Fibre Optics
Network software installation; issued cheque
#41 with the balance due in 30 days.
12 0 0 0 –
Bank
10 0 0 0 –
2 0 0 0 –
1 3 5 –
99Nov.Nov.20—20—
• Account titles are capitalized
Account Titles
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Chapter 6.1
16
• Amounts in the opening journal entry are the same as amounts on the opening balance sheet
Bank
Supplies
Equipment
Bank Loan
Opening financial position of Shirley Cassar
19 5 5 0 –
Shirley Cassar, Capital
10 0 0 0 –
1 4 0 0 –3030Oct.Oct.20—20—
Automobile
22 0 9 0 –
8 7 1 5 –
2 4 2 5 –
The Opening Entry