Intro Accounts and Journaling Accounting 1 1.03

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 3

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1

Accounts, Journals, and
Recording Entries in a Journal

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 3-1

Terms to Know

 journal
 journalizing
 entry
 general journal
 double-entry accounting
 source document

Accounts to MEMORIZE
Assets: (100s) Debit Normal Balance +-
110 Cash
120 Accounts Receivable, Customer Name
130 Prepaid Insurance
140 Supplies
Liabilities: (200s) Credit Normal Balance - +
210 Accounts Payable, Vendor Name
Equity: (300s) Credit Normal Balance - +
300 Capital, Owner Name
Debit Normal Balance +-
320 Owner Name, Drawing
Revenues: (400s) Credit Normal Balance - +
410 Sales
Expenses: (500s) Debit Normal Balance + -
510 Rent Expense

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Match

Match the type of account to it's normal increase side.

• Assets

• Liabilities

• Equity

• Revenues

• Expenses

Debit Normal Balances 100 accounts

Credit Normal Balance 200 accounts

Credit Normal Balance 300 accounts

Credit Normal Balance 400 accounts

Debit Normal Balance 500 accounts

• Debit Normal Balances 100 accounts

• Credit Normal Balance 200 accounts

• Credit Normal Balance 300 accounts

• Credit Normal Balance 400 accounts

• Debit Normal Balance 500 accounts

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LESSON 3-1

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LESSON 3-1

2. Write the title of the account and the amount to be debited.
3. Write the title of the account and the amount to be credited
4. Record Source Document
(R1, C1, M1, S1)

August 1. Received cash from owner as an investment, $5,000.00.
Receipt No. 1.

1. Write the date in the Date column.

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LESSON 3-1

August 3. Paid cash for supplies, $275.00. Check No. 1.

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1. Write the date in the Date column.

4. Write the source document number in the Doc. No. column.

3. Write the title of the account credited.
Write the credit amount.

2. Write the title of the account and the amount to be debited.

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LESSON 3-1

August 4. Paid cash for insurance, $1,200.00. Check No. 2.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited.
Write the credit amount.
4. Write the source document number in the Doc. No. column.

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LESSON 3-1

August 7. Bought supplies on account from Supply Depot, $500.00.
Memorandum No. 1.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.

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LESSON 3-1

August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited.
Write the credit amount.
4. Write the source document number in the Doc. No. column.

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Multiple Choice

What is the correct entry for the transaction PAID CASH FOR SUPPLIES FOR THE OFFICE, $900 is:

• Debit Office Supplies $900, Credit Accounts Payable $900
• Debit Cash $900, Credit Supplies $900
• Debit Supplies $900, Credit Cash $900
• Debit Supplies Expense $900, Credit Cash $900

Multiple Choice

The correct journal entry for the transaction PAID CASH TO SALLY JONES, OWNER FOR PERSONAL USE, $1,500 is:

• Debit Cash $1,500; Credit Capital Sally- Jones $1,500

• Debit Sally Jones, Drawing $1,500; Credit Accounts Payable $1,500

• Debit Capital - Sally Jones $1,500; Credit Cash $1,500

• Debit Sally Jones, Drawing $1,500; Credit Cash $1,500

Multiple Choice

What is an example of an equity account (which normally carries a normal credit balance) but that carries

a Normal Debit Balance instead?

• Cash

• Janice Clark, Drawing

• Capital - Janice Clark

• Supplies

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LESSON 3

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3

Journalizing Transactions That
Affect Owner’s Equity and
Receiving Cash on Account

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LESSON 3-1

August 12. Received cash from sales, $295.00. Tape No. 12.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited.
Write the credit amount.
4. Write the source document number in the Doc. No. column.

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LESSON 3-1

August 12. Sold services on account to Oakdale School, $350.00. Sales
Invoice No. 1.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited.
Write the credit amount.
4. Write the source document number in the Doc. No. column.

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LESSON 3-1

August 12. Paid cash for rent, $300.00. Check No. 4.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited.
Write the credit amount.
4. Write the source document number in the Doc. No. column.

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LESSON 3-1

August 12. Received cash on account from Oakdale School, $200.00.
Receipt No. 2.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.

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LESSON 3-1

PAID CASH TO OWNER FOR

August 12. Paid cash to owner for personal use, $125.00. Check No. 6.

1. Write the date in the Date column.
2. Write the title of the account debited.
Write the debit amount.
3. Write the title of the account credited.
Write the credit amount.
4. Write the source document number in the Doc. No. column.

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Multiple Choice

What will the impact on owner's equity be when a business receives $2,000 cash from sales?

• Owner's equity will increase by $2,000.
• Owner's equity will remain unchanged.
• Owner's equity will decrease by $2,000.
• Owner's equity will increase by $1,000.

Multiple Choice

What is the effect on assets when the owner's equity increases from their investment of $15,000?

• Assets increase by $15,000.
• Assets increase by $10,000.
• Assets remain unchanged.
• Assets decrease by $15,000.

Multiple Choice

What is the journal entry to record the transaction RECEIVED $15,000 INVESTMENT FROM THE OWNER?

• Debit Cash $10,000; Credit Owner's Equity $10,000.
• Debit Owner's Equity $15,000; Credit Cash $15,000.
• Debit Cash $15,000; Credit Revenue $15,000.
• Debit Cash $15,000; Credit Owner's Equity $15,000.

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LESSON 3

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Starting a New Journal Page

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LESSON 3-1

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LESSON 3-1

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Multiple Choice

When you switch to a new journal page, what let's others know that you have no mistakes?

• Single, Double underline

• entries on debit and credit

• cross referencing

• Adding the Source doc numbers