4.1 The Journal Flashcards
1
Q
Journal
A
is a book where the accounting entries for ALL transactions first recorded
The journal provides a continuous record of all transactions
2
Q
Journalizing
A
is the process of recording accounting entries in the journal
3
Q
How are the transactions recorded
A
- Separately
- Chronological
4
Q
General Journal
A
- There is a debit column & a credit column
- Also columns for the date and particulars (account names & explanations) and a posting reference
5
Q
Main difference
A
The formatting
6
Q
Formatting (Recording the date)
A
- The YEAR in small printing on the first line (do not repeat for every entry)
- The MONTH on the first line of the page. Do not repeat unless the month changes.
- The DAY in the second space should be on the first line of every accounting entry. The day is repeated, no matter how many transactions occur on the same day.
7
Q
Journal entries step one
A
Enter the day in the date column
8
Q
Journal entries step two
A
- Enter the name(s) of the account(s) to be debited at the left side of the particulars column.
- Enter the amounts in the debit money column.
9
Q
Journal entries step three
A
- Enter the name(s) of the account(s) to be credited
- They are INDENTED from the left side of the particulars column.
- Enter the amounts in the credit money column.
10
Q
Journal entries step four
A
- Write a brief explanation for the entry (with no indent).
-If you have an invoice or sales slip number, it should be shown here. If that is not given, it can be a simple explanation of what happened. (example: Jerusha paid back $50 of her A/R)
11
Q
The opening entry
A
- The VERY FIRST accounting entry sets up the business – called the opening entry
- Use the balance sheet, and input all of the accounts with their debit / credit values
