RECORDING
TRANSACTIONS IN A
GENERAL JOURNAL
Chapter 6
THE STEPS OF THE ACCOUNTING CYCLE
1.
2.
3.
4.
5.
6.
7.
8.
9.
Collect and verify source documents
Analyze each transaction
Journalize each transaction
Post to ledger
Prepare a trial balance
Prepare a worksheet
Prepare financial statements
Journalize and post closing entries
Prepare a post-closing trial balance
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STEP 1: COLLECT AND VERIFY SOURCE
DOCUMENTS
A source document the paper evidence of the
transaction.
 Invoice
 Receipt
 Memorandum
 Check stub
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STEP 2: ANALYZING BUSINESS
TRANSACTIONS
Analyze the source document to
Determine the affected
Determine debits and credits
STEP 3: RECORDING BUSINESS
TRANSACTIONS IN A JOURNAL
Journal – a record of the transactions of a
business kept in chronological order
Journalizing – the process of recording
business transactions in a journal
THE ACCOUNTING PERIOD
An accounting period of 12 months is called a
fiscal year.
If the fiscal year for a business begins on
January 1 and ends on December 31, it is
called a calendar year accounting period.
Some businesses have different fiscal years. A
school district runs July 1 through June 30 and
department stores often run February 1
through January 31.
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RECORDING A GENERAL JOURNAL ENTRY
 General Journal – an all purpose journal in which all
of the transactions of a business may be recorded.
TRANSACTION 1
TRANSACTION 2
TRANSACTION 3
TRANSACTION 4
TRANSACTION 5
TRANSACTION 6
TRANSACTION 7
TRANSACTION 8
TRANSACTION 9
TRANSACTION 10
TRANSACTION 11
TRANSACTION 12
TRANSACTION 13
TRANSACTION 14
MAKING JOURNAL CORRECTIONS