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TRANSACTIONS IN A Chapter 6
JOURNAL
RECORDING TRANSACTIONS IN A
GENERAL JOURNAL
Main Idea
The accounting cycle is a series of steps done in each
accounting period to keep records in an orderly fashion.
Key Terms
accounting cycle
source document
invoice
receipt
memorandum
check stub
journal
journalizing
fiscal year
calendar year
THE ACCOUNTING CYCLE
STEP ONE
Collecting and Verifying Source Documents
A business has several transactions that take place daily.
Yes. The seller gives the invoice to the buyer but retains a copy for
his/her records.
$1 ,022.25
THE ACCOUNTING CYCLE
STEP T WO
Analyzing Business Transactions
Determine the debit and credit portions of each transaction by
analyzing the source document.
In the real world, you must examine this document to
determine what happened in a business transaction.
THE ACCOUNTING CYCLE
STEP THREE
Recording Business Transactions in a Journal
Now the complete details of each transaction must be entered
in a journal, a record of the transactions of a business.
This is called journalizing
A journal can also be called the book of original entr y .
THE ACCOUNTING CYCLE
Do the math
Napkins: $29.28
Salt: $9.57
Paper plates: $21 .84
Paper cups, medium: $32.96
Total: $93.65
THE ACCOUNTING CYCLE
Problem 6-1
Main Idea
You can use the general journal to record all of the transactions
of a business.
Key Term
general journal
RECORDING TRANSACTIONS IN THE
GENERAL JOURNAL
Recording a General Journal Entry
The most common accounting journal is the general journal,
in which all of the transactions of a business may be
recorded.
Business transaction 7
Business transaction 14
What is used?
Computers or ink on paper
RECORDING TRANSACTIONS IN THE
GENERAL JOURNAL
Correcting the General Journal
If an error is found, it must be corrected.
Do not erase an error.
Draw a line through it with a pen and enter the correct
information above the line.
RECORDING TRANSACTIONS IN THE
GENERAL JOURNAL
Do the math
Step 1: D
Step 2: F
Step 3: E
Step 4: B
Step 5: A
Step 6: C
RECORDING TRANSACTIONS IN THE
GENERAL JOURNAL
Problem 6-3
Problem 1
Describe the general journal entry for the following event
On Januar y 16, 2016 On Time Deliver y issued Check 243 to
Comfort Space for $4,000 to buy office furniture.
CHAPTER SIX REVIEW
First record:
The date in the Date Column
2016
Jan. 16
CHAPTER SIX REVIEW
Then record:
The account debited in the Description column
The amount of the debit in the Debit column
2016
Jan. 16 Office Furniture 4 0 0 0 00
CHAPTER SIX REVIEW
Then record:
The account credited in the Description column. The account
name is indented under the debit account name.
The amount of the credit in the Credit Column.
2016
Jan. 16 Office Furniture 4 0 0 0 00
Cash in Bank 4 0 0 0 00
CHAPTER SIX REVIEW
2016
Jan. 16 Office Furniture 4 0 0 0 00
Cash in Bank 4 0 0 0 00
Check 243
CHAPTER SIX REVIEW
Problem 2
Why do businesses separate their accounting records into
accounting periods?
Problem 3
On October 31 , Roadrunner bought oil from Ace Energy for
$32.40 cash, Receipt 4.
Problem 3 Answer
20--
Oct. 31 Maintenance Expense 3 2 40
Cash in Bank 3 2 40
Receipt 4
CHAPTER SIX QUIZ