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Journalizing Transactions

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Karylle Aguila
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14 views

Journalizing Transactions

mnknknk

Uploaded by

Karylle Aguila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Journalizing Transaction

Chapter 3
Learning Objectives:
Upon completion of this module, the learner should be able
to
 describes the nature of transactions in a service business
 identify the four parts of a journal entry
 analyze and record cash transactions using source document
 analyze and record transactions for buying and paying on
account
Learning Objectives:
 analyze and record transactions affecting owner’s
equity
 analyze and record sales and receipt of cash on
account
 demonstrate when to end and how to start a new
journal page
Accounting Cycle

 Accounting cycle refers to a series of


sequential steps or procedures performs to
accomplish the accounting process.
Steps in Accounting Cycle

Identification of events to be recorded.


Transactions are recorded in the journal.
Journal entries are posted to the ledger.
Preparation of a trial balance.
Steps in Accounting Cycle
Preparation of the worksheet including adjusting entries.
Adjusting journal entries are journalized and posted.
Preparations of the financial statements.
Closing journal entries are journalized and posted.
Preparation of a post-closing trial balance.
Reversing journal entries are journalized and posted.
Source Documents

Source document – a business paper from


which information is obtained for a journal
entry
Examples of Source Documents
 Checks – a business form ordering a bank to pay cash from a
bank account.
 Invoices – a form describing the goods or services sold, the
quantity, the price and terms of sale.
 Sales invoice – an invoice used as a source document for
recording a sale on account. It is also known as sales ticket
or sales slip, statement of account or billing statement.
Examples of Source Documents
 Receipts – a business form giving written
acknowledgement for cash received.
 Memoranda – a form on which a brief message is written
to describe a transaction.
 Calculator tapes– a source document for daily sales.
General Journal

 Journal – a form for recording transactions in chronological


order. It is called the book of original entry. It comes from
Latin word, “diurnalis” meaning daily.
 Journalizing – recording transactions in a journal
General Journal
 Entry – the information recorded for each transaction in a
journal.
 Double entry accounting – the recording of debit and
credit parts of a transaction.

Transactions are recorded in a journal in order by date.


Standard Contents of the General Journal

a. Date
b. Account Title and Explanation

c. Posting reference (P.R)


d. Debit
Rules of Double Entry System
1. Two or more accounts are affected by each
transaction.
2. The sum of debits for every transaction equals the
sum of the credits.
3. The equality of the accounting equation is always
maintained.
Preparing Journal Entries
Read and analyze the following transactions of Delgado Web Services for
2023. Prepare the journal entries. (Refer on page 71 of the book for the
Chart of Accounts)
January 2. Received cash from owner as an investment, P 20,000. Receipt
No, 1
January 2. Paid cash for supplies, P 1,650.00. Check No. 1
January 3. Paid cash for insurance, P 9,000.00. Check No. 2
January 5. Bought supplies on account from Canyon Office supplies,
P 2,200. Memorandum No. 1
Preparing Journal Entries
January 9. Paid cash on account to Canyon Office Supplies, P 1,000 Check
No. 3
January 10. Received cash from sales, P 11,000. Calculator tape No. 10
January 12. Sold services in account to Main Street Services, P 5,000.
Sales Invoice No.1
January 12. Paid cash for communications bill, including cellphone and
internet services, P800. Check No.4
January 15. Paid cash for equipment rental, P 4,000. Check No. 5
Preparing Journal Entries

January 16. Received cash on account from Main Street Services, P 2,000.
Receipt No. 2
January 16. Paid cash to owner for a withdrawal of equity, P 3,500. Check
No. 6
JOURNAL ENTRIES
JOURNAL ENTRIES
JOURNAL ENTRIES
References

 Win Ballada CPA, C. M. (2019 ). Accounting Fundamentals, Made


Esay 2019 Isssue - 5th Edition. Sampaloc Manila: Domdane
Publishers & Made Easy Books.
 Claudia B. Gilbertson, M. W.-G. (2020). Fundamentals of
Accountancy, Business and Management 1 Philippine Edition .
Sampaloc Manila: Rex Bookstore, Inc.

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