century 21 accounting © 2009 south-western, cengage learning lesson 3-2 journalizing buying...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2LESSON 3-2
Journalizing Buying Insurance, Buying on Account, and Paying on Account
1. Journalize transactions correctly .
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Competency: Understanding the Competency: Understanding the Accounting Cycle for a Service BusinessAccounting Cycle for a Service Business
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LESSON 3-2
Objectives:36 Use source documents to journalize
transactions.
38 Prepare customer invoices for a service business.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Chapter 3 ObjectivesChapter 3 Objectives
Define accounting terms related to journalizing transactions.
Identify accounting concepts and practices related to journalizing transactions.
Record transactions to set up a business in a five-column journal.
Record transactions to buy insurance for cash and supplies on account in a five-column journal.
Record transactions that affect owner’s equity and receiving cash on account in a five-column journal.
Prove and rule a five-column journal and prove cash.
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LESSON 3-2
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 3-2
PAID CASH FOR INSURANCEPAID CASH FOR INSURANCE page 63
August 4. Paid cash for insurance, $1,200.00. Check No. 2.
1. Write the date in the Date column.
2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column.
3. Write the credit amount in the Cash Credit column.
4. Write the source document number in the Doc. No. column.
1144
332222
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 3-2
BOUGHT SUPPLIES ON ACCOUNTBOUGHT SUPPLIES ON ACCOUNT page 64
August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1.
1. Write the date in the Date column.2. Record the debit amount in the General Debit
column. Write the title of the account in the Account Title column.
3. Record the credit amount on the next line in the General Credit column. Write the title of the account in the Account Title column.
4. Write the source document number in the Doc. No. column on the first line of the entry.
11 44 2222
3333
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 3-2
PAID CASH ON ACCOUNTPAID CASH ON ACCOUNT page 65
August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3.
1. Write the date in the Date column.
2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column.
3. Write the credit amount in the Cash Credit column.
4. Write the source document number in the Doc. No. column.
443322
2211
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Exit Ticket for Chapter 3-2Exit Ticket for Chapter 3-2
1. Which journal columns are used to record paying cash for insurance?
2. Which journal columns are used to record buying supplies on account?
3. Which journal columns are used to record paying cash on account?
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LESSON 3-2
In a Word Document, SaveAS: Chapter3-2AYUYourNameDrop a copy in my InBox today before you leave!
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Chapter 3-2 Assignments Chapter 3-2 Assignments Complete on ApliaComplete on Aplia
Work Together 3-2 On Your Own 3-2 Application Problem 3-2
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LESSON 3-2