Kế toán, kiểm toán - Chapter seven: The general journal

CHAPTER SEVENThe General Journal1. Record transactions in a general journal.2. Use a chart of accounts.3. Correct errors in the journal.THE GENERAL JOURNALObjectives:3The Use of the General JournalThe accounting record known as a journal is used to list all the necessary information about a transaction in one place.The journal is known as the book of original entry.4The Use of the General Journal (continued)The process of recording these transactions in the journal is known as journalizing, or recording journal entries.Double-entry accounting is the system of journalizing when each transaction affects at least two accounts.5Journalizing a Business’s TransactionsAccounts used in the recording of transactions are taken from a chart of accounts.The chart of accounts lists, by number in chronological order, the accounts determined to be used by the business.6Journalizing a Business’s Transactions (continued)Pencil footings are used at the bottom of the money columns to provide balance of debits and credits.Entries may contain more than one debit and/or credit.7TransactionRecord the owner’s investment in the business:Cash, $32,000Accounts Receivable, $2,000Office Equipment, $12,000Delivery Trucks, $60,000Accounts Payable, $20,000 Capital, $86,0008Transaction AnalysisThe assets (debits) and liabilities (credit) and owner’s equity account (credit) are recorded in the journal.9TransactionPaid $1800 to Wilson Management for the November rent.10Transaction AnalysisAn increase in expenses decreases owner’s equity (debit Rent Expense).An asset decreases (credit Cash).11TransactionPaid $400 to Kenworth Truck Sales on account.12Transaction AnalysisA liability decreases (debit Accounts Payable).An asset decreases (credit Cash).13TransactionPaid $150 for gasoline and oil for the trucks.14Transaction AnalysisAn increase in expenses decreases owner’s equity (debit Truck Expense).An asset decreases (credit Cash).15Accounting TerminologyChart of accountsChronological orderCompound entryDouble-entry accountingGeneral journalJournalJournalizingOpening Entry16Chapter SummaryA journal is used to keep a record of the day-to-day financial activities of a business.Some people use “T” accounts to analyze the transactions before entering them into the journal.17Chapter Summary(continued)The journal is used to list essential information about each transaction.The journal is called the book or record of original entry.A general journal is a common type of journal.18Chapter Summary(continued)A systematically arranged list of a business’s accounts is known as a chart of accounts. The chart of accounts shows account classifications (assets, liabilities, owner’s equity, revenue, and expenses) as well as the name and number of each account.19Chapter Summary(continued)A journal entry may contain more than one debit and/or credit. This type of entry is called a compound entry. The totals of the debit and credit columns must be equal no matter how many accounts are used in a transaction.201. “T” accounts may be used in place of journalizing. 2. The journal is known as the record or book of original entry.3. Revenue and expense accounts are not on the chart of accounts.Topic QuizAnswer the following true/false questions:TRUEFALSEFALSE21 Investigating on the InternetSources of information about general journals can be accessed at the websites of most businesses.As a research assignment, access a business website and report those sources of information that might concern the use of journals in business.22(Return to Topic Quiz)1. “T” accounts may be used in place of journalizing.FALSE“T” accounts may be used to analyze a transaction, but the journal must be used to record the financial activity and the accounts affected.23(Return to Topic Quiz)3. Revenue and expense accounts are not on the chart of accounts.FALSEAll accounts are listed on the chart of accounts.24