Ch 3.3 Journalizing Transactions

Question 1

3 basic steps of the recording process

Answer 1

1) analyze each transaction (what accounts it effects?)
2) record the transaction info in the general journal
3) transfer/post info in general journal to the apporpraite accounts in the general ledger

Question 2

Source documents, such as a sales receipt, a cheque or electronic deposit, an invoice, or a cash register report, provide evidence of the transaction. This evidence is analyzed to determine the effect of the transaction on specific accounts. The journal entry for the transaction is then recorded in the general journal. Finally, the journal entry is transferred to the designated accounts in the general ledger.

Answer 2

Source documents, such as a sales receipt, a cheque or electronic deposit, an invoice, or a cash register report, provide evidence of the transaction. This evidence is analyzed to determine the effect of the transaction on specific accounts. The journal entry for the transaction is then recorded in the general journal. Finally, the journal entry is transferred to the designated accounts in the general ledger.

Question 3

General jounral-

Answer 3

recorded in chronological order

The book of original entry in which transactions are recorded in chronological (date) order

Question 4

3 goals of general jorunal

Answer 4

1) It discloses the complete effect of a transaction in one place, including a brief explanation of the transaction.

2) It provides a chronological record of transactions

3) It helps to prevent and locate errors, because the debit and credit amounts for each entry can be quickly compared.

Question 5

What system does the general journal use

Answer 5

double entry accounting system (two sided effects)

Question 6

Process of getting to jorunal entry

1) basic analysis
2) equation analysis
3) ddebit-credit analysis
4) jorunal entry

Answer 6

1) The date of the transaction is entered in the Date column.

2) The account to be debited is entered first at the left. The account to be credited is then entered on the next line, indented under the line above. The indentation differentiates debits from credits and reduces the chance of switching the debit and credit amounts by mistake.

3) The amounts for the debits are recorded in the Debit (left) column, and the amounts for the credits are recorded in the Credit (right) column.

4)A brief explanation of the transaction is given in parentheses.

Question 7

What is a simple journal entry

Answer 7

when only two accounts are affected “one debit and one credit:

Question 8

compound entry

Answer 8

when 3+ accounts are required in one journal entry

Question 9

Despite simple journal entry or compound journal entry, what must be true

Answer 9

the total debit and credit amounts must be equal!!!!!!!!