Chapter Three
Journalizing Transactions




3.1 Journals, Source Documents and Recording Entries
o Journals & Journalizing
 Journal—A form for recording transactions in chronological order
 Journalizing—Recording transactions in a journal
o A Five-Column Journal
 Using A Journal
 Special Amount Column—A journal amount column headed with an
account title
 General Amount Column—A journal amount column that is not headed
with an account title.
 Accuracy
 Chronological Record
 Double Entry Recording
 Entry—Information for each transaction recorded in a journal
 Double-entry accounting—The recording of debit & credit parts of a
transaction
 Source Document—A business paper from which information is obtained for a
journal entry
 Checks—A business form ordering a bank to pay cash from a bank
account
 Invoice—A form describing the goods or services sold, the quantity, and
the price.
 Sales Invoice—An invoice used as a source document for recording a
sale
 Receipts—A business form giving written acknowledgement of cash
received
 Memorandums—A form on which a brief message is written describing
a transaction
 Calculator Tapes
o Received Cash From Owner As An Investment
o Paid Cash For Supplies
3.2 Journalizing Buying Insurance, Buying On Account, & Paying On Account
3.3 Journalizing Transactions That Affect Owner’s Equity & Receiving Cash On Account
3.4 Proving & Ruling A Journal
o Proving A Journal Page
o Ruling A Journal Page
o Starting A New Journal Page
o Standard Accounting Practices