LESSON 3-1
Journals, Source
Documents, and
Recording Entries in a
Journal
1. Identify the steps in which transactions are
recorded in a journal.
2. Explain the importance of source-documents.
3. List the four parts of a journal entry.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
Competency: Understanding the
Accounting Cycle for a Service Business
Objectives:
36 Use source documents to journalize
transactions.
38 Prepare customer invoices for a
service business.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
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Chapter 3 Objectives
 Define accounting terms related to journalizing
transactions.
 Identify accounting concepts and practices related to
journalizing transactions.
 Record transactions to set up a business in a five-column
journal.
 Record transactions to buy insurance for cash and
supplies on account in a five-column journal.
 Record transactions that affect owner’s equity and
receiving cash on account in a five-column journal.
 Prove and rule a five-column journal and prove cash.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
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 Journal – a form for recording transactions in
chronological order.
 Journalizing – recording transactions in 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.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
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 Entry – Information for each transaction recorded in a
journal.
 Double-entry accounting – the recording of debit and
credit parts of a transaction.
 Source document – a business paper from which
information is obtained for a journal entry.
 Check – a business form ordering a bank to pay cash
from a bank account.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
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 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 on account.
 Receipt – A business form giving written
acknowledgement for cash received.
 Memorandum – a form on which a brief message is
written describing a transaction.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
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A FIVE-COLUMN JOURNAL
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 57
LESSON 3-1
8
CHECKS
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 58
LESSON 3-1
9
SALES INVOICES
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 58
LESSON 3-1
10
OTHER SOURCE DOCUMENTS
page 59
calculator tape
receipt
memorandum
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
11
RECEIVED CASH FROM OWNER AS AN
INVESTMENT
page 60
August 1. Received cash from owner as an investment, $5,000.00.
Receipt No. 1.
1
3
4
3
2
1. Write the date in the Date column.
2. Write the debit amount in the Cash
Debit column.
3. Record the credit amount in the General Credit column. Write the
title of the account in the Account Title column.
4. Write the source document number in the Doc. No. column.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
12
PAID CASH FOR SUPPLIES
page 61
August 3. Paid cash for supplies, $275.00. Check No. 1.
1
2
2
3
4
1. Write the date in the Date column.
2. Record the debit amount in the General
Debit column. Write the title of the
account in the Account Title column.
3. Write the credit amount in the Cash Credit column.
4. Write the source document number in the Doc. No. column.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
13
DEFINE TERMS REVIEW
page 62
In your Chapter 3Terms Word Document and SaveAS
Chapter3TermsYourName






journal
journalizing
special amount column
general amount column
entry
double-entry accounting






source document
check
invoice
sales invoice
receipt
memorandum
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
14
Exit Ticket for Chapter 3-1
In a Word Document, SaveAS: Chapter3-1AYUYourName
Drop a copy in my InBox today before you leave!
1. In what order are transactions recorded in a journal?
2. Why are source-documents important?
3. List the four parts of a journal entry.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
15
Chapter 3-1 Assignments
Complete on Aplia
 Work Together 3-1
 On Your Own 3-1
 Application Problem 3-1
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1