Step 2Journalizing
Step 2: Journalizing Journalizing is the organization and
recording of accounting information into a journal or journals.
Terms: Journal – A book for recording accounting
information in a chronological order.
Terms cont’d General Journal- A journal with two
amount columns. Entry- each event or transaction recorded
in a journal. Opening entry- the first entry which opens
or starts the records of the business. Source Documents- the paper which
provides proof of a journal entry.
The Parts of a Journal Entry A journal entry will always have the
following parts; Date Debit Part Credit Part Source Document
Examples Analyze the following transactions and journalize
them into the general journal. Oct. 1 -Purchase of supplies for cash $10.00 Oct. 2 -Sale of services on account to T. Blue
$50.00 Oct. 3 -Paid cash on account with R. Reid $60.00 Oct. 4 -Owner withdrawals equipment. $80.00
Oct 1. Purchase of Supplies for Cash
GENERAL JOURNALPage__
__
DATE ACCOUNT TITLEDoc No.
Post. Ref.
GENERAL
DEBIT CREDIT
Oct. 1 Supplies 10.00
1. Put the date of the transaction.
2. Record the debit first. Record the account title in the account title column.
3. Record the amount in the debit column.
Oct 1. Purchase of Supplies for Cash
GENERAL JOURNALPage_1
___
DATE ACCOUNT TITLEDoc No.
Post. Ref.
GENERAL
DEBIT CREDIT
Oct. 1 Supplies 10.00
Cash 10.00
Cheque
4. Indent and insert the account title that will be credited
5. Insert the amount in the credit column that will be credited
6. Indent twice and record the source document that was used to gather the information
Oct 2. Sale of Services on Account to T. Blue
GENERAL JOURNALPage_1_
__
DATE ACCOUNT TITLE Doc No.
Post. Ref.
GENERAL
DEBIT CREDIT
Oct. 1 Supplies 10.00
Cash 10.00
Cheque
Oct. 2 A/R T. Blue 50.00
Sales 50.00
Sales Invoice
Oct. 3 Paid cash on account with R. Reid $60.00
GENERAL JOURNALPage_1
___
DATE ACCOUNT TITLE Doc No.
Post. Ref.
GENERAL
DEBITCREDI
TOct. 1 Supplies 10.00 Cash 10.00 Cheque Oct. 2 A/R T. Blue 50.00 Sales 50.00 Sales Invoice Oct. 3 A/P Reid 60.00 Cash 60.00 Cheque
Oct. 4 Owner Withdraws Equipment from the business $80.00
GENERAL JOURNALPage_1_
__
DATE ACCOUNT TITLE Doc No.
Post. Ref.
GENERAL
DEBIT CREDIT
Oct. 1 Supplies 10.00
Cash 10.00
Cheque
Oct. 2 A/R T. Blue 50.00
Sales 50.00
Sales Invoice
Oct. 3 A/P Reid 60.00
Cash 60.00
Cheque
Oct.4 Drawings 80.00
Equipment 80.00
Memo
Completing the Journal Your debits and your credits must
balance at all times. You must use underlines when you do
your totals.
Completing the Journal
4. Insert the date that you will complete your totals
5. Place a single line on the top of the debit and credit columns in the total row
6. Add both rows up and place the total in the two columns beside eachother.
7. Double underline the totals
GENERAL JOURNALPage_1_
__
DATE ACCOUNT TITLE Doc No.
Post. Ref.
GENERAL
DEBIT CREDIT
Oct. 1 Supplies 10.00
Cash 10.00
Cheque
Oct. 2 A/R T. Blue 50.00
Sales 50.00
Sales Invoice
Oct. 3 A/P Reid 60.00
Cash 60.00
Cheque
Oct.4 Drawings 80.00
Equipment 80.00
Memo
Oct. 4 Totals 200.00 200.00
Remember! There is always a debit and a credit. Use your notes to figure out what source
document would be used. Always record your debit first, then your
credit!
Assignment Syme Textbook
Page 161 # 1 Page 162 # 2 Clare Lehto Window Cleaning Wayne Siebert Champion Rentall Janet Nuttall
Recording Opening Entries An opening entry is an amount recorded
as the beginning balance for the different types of accounts found on the balance sheet.
The account names and amounts are recorded separately at the beginning of the journal.
Below is a balance sheet for Chris Turner.
Chris Turner
Balance Sheet
July 15, 20__
Assets Liabilities
Cash $55.00 Owed to Phillip $80.00
Bank Balance $215.50 Owed to Dad $200.00
Bicycle $185.00 Overdue Fines $12.50
Stereo $250.00 Total Liabilities $292.50
Ski Equipment $100.00
Owners Equity
Chris Turner, Capital $713.00
Total Assets $1005.50 Total Liabilities and Equity
$1005.50
Using the balance sheet record the opening entries. Start with your assets.
GENERAL JOURNAL Page_1___
DATE ACCOUNT TITLEDoc No.
Post. Ref.
GENERAL
DEBIT CREDIT
July 1 Cash 55.00
Bank Balance 215.50
Bicycle 185.00
Stereo 250.00
Ski Equipment 100.00
Now list your liabilities and capital
GENERAL JOURNAL Page_1___
DATE ACCOUNT TITLEDoc No.
Post. Ref.
GENERAL
DEBIT CREDIT
July 1 Cash 55.00
Bank Balance 215.50
Bicycle 185.00
Stereo 250.00
Ski Equipment 100.00
A/P Phillip 80.00
A/P Dad 200.00
Overdue Fines 12.50
Chris Turner Capital 713.00
Balance Sheet
Complete your opening entries by centering the word ‘Balance Sheet’ on the next line in the account title column.
GENERAL JOURNAL Page_1___
DATE ACCOUNT TITLEDoc No.
Post. Ref.
GENERAL
DEBIT CREDIT
July 1 Cash 55.00
Bank Balance 215.50
Bicycle 185.00
Stereo 250.00
Ski Equipment 100.00
A/P Phillip 80.00
A/P Dad 200.00
Overdue Fines 12.50
Chris Turner Capital 713.00
Balance Sheet
Record the opening entry in this journal from the following balance sheet. Use July 1 of the current year as the date of the entry.
Sunnybrook Farms
Balance Sheet
July 1, 20__
Assets Liabilities
Cash 210.00 Grange Credit Union 5000.00
Livestock $1750.00 Red River Feed Co. $140.00
Machinery $3850.00 River City Feed & Grain $110.00
Buildings $10500.00 Total Liabilities $5250.00
Land $12000.00
Owners Equity
Dale Hiller, Capital $23060.00
Total Assets 28310.00 Total Liabilities and Equity
$28310.00
GENERAL JOURNAL Page_1___
DATE ACCOUNT TITLE
Doc No.Post. Ref.
GENERAL
DEBIT CREDIT
July 1 Cash 210.00
Livestock 1750.00
Machinery 3850.00
Buildings 10500.00
Land 12000.00
Grange Credit Union 5000.00
Red River Feed Co. 140.00
River City Feed & Grain 110.00
Dale Hiller Capital 23060.00
Balance Sheet
Cash Combination Journal
Cash/Combination Journal A journal used to record cash
transactions. Includes special columns for
transactions that occur on a regular basis.
Analyze and journalize the following transactions into a cash/combination journal.
Oct. 1 Sale of equipment for cash $10.00
Oct. 2 Paid cash on account to J. Brown $20.00
Oct. 3 Sale of services for cash $30.00 Beginning Cash is $100.00 Ending Cash should be $120.00
COMBINATION JOURNALPage _1_
DATEACCOUNT TITLE
DOC NO.POST REF.
GENERAL
SALES CREDIT
CASH
month day DEBIT CREDIT DEBIT CREDIT
1 Oct 1 Equipment R 10.00 10.00 1
2 Oct 2 A/P J. Brown C 20.00 20.00 2
3 Oct. 3 T3 30.00 30.00
3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
-When Journalizing make sure you enter the source document under Doc. No. They will be on all assignments at the very end of the transaction. IE) T14, C105, T28
- Anytime you deal with cash sales enter a check mark in both the account title and the post ref. column
Prove DR = CR You now need to make sure that your debits
equal your credits. This usually occurs at the end of each month. To do this: Total all columns and rule them. Take The general debit and the cash debit
and add them together. Then take you general credit, sales credit
and cash credit and add them together. Make sure they equal each other. And you
right it in the proper form. ( DR=CR=60)
COMBINATION JOURNALPage _1_
DATEACCOUNT TITLE
DOC NO.POST REF.
GENERAL
SALES CREDIT
CASH
month day DEBIT CREDIT DEBIT CREDIT
1 Oct 1 Equipment R 10.00 10.00 1
2 Oct 2 A/P J. Brown C 20.00 20.00 2
3 Oct. 3 T3 30.00 30.00
3
4 Totals 20.00 10.00 30.00 40.00 20.00 4
5 5
6 6
7 7
8 8
9 9
10
DR=CR=60
10
11 11
12 12
Proving the Accuracy of the cash combination journal
To do this, use this formula
The beginning balance is always given to you in the assignments. Your ending cash balance is also given to you in the assignments. If your ending cash total does not match the one in the assignment you have to go back and check over your work.
Beginning Cash + Cash Received - Cash Paid Out =Ending Cash
COMBINATION JOURNALPage _1_
DATEACCOUNT TITLE
DOC NO.POST REF.
GENERAL
SALES CREDIT
CASH
month day DEBIT CREDIT DEBIT CREDIT
1 Oct 1 Equipment R 10.00 10.00 1
2 Oct 2 A/P J. Brown C 20.00 20.00 2
3 Oct. 3 T3 30.00 30.00
3
4 Totals 20.00 10.00 30.00 40.00 20.00 4
5 5
6
DR=CR=60
6
7 7
8 8
9 9
10 10
11 11
12 12
Beginning Cash + Cash Received - Cash Paid Out =Ending Cash
100.00 40.00 20.00 120.00
If a page is completed before month end Click here to find out.
Assignments C21 Page 84 5-1 C21 Page 86 5-M C21 Page 87 5-C C21 Page 85 5-2