ACIS-2115 - Reading Notes - 3-3- Journals PDF

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Summary

This is a common taught course. All sections of ACIS 2115 follow the same schedule and cover the same content.
Prof: L Almond
Reading for section 3.2...

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Daniel T. Eisert

ACIS-2115

3.3 – Journals ACIS-2115: Principles of Accounting September 8, 2019 (Week 3)

Journals

Journals are used to document transactions. 1. Analyze transaction 2. Enter transaction to journal 3. Transfer journal to ledger For each transaction, the journal shows the debit and credit effects on specific accounts. A general journal 1. Discloses in one place the complete effect of a transaction, 2. Provides a chronological record of transactions, and 3. Helps to prevent/locate errors because debit and credit amounts for each entry can be readily compared. Recall ~ some of the examples from the 3.1 reading notes. We had the company 1. Issue common stock for $10,000 cash, 2. Borrow $5,000 from the bank by signing a note, and 3. Purchase $5,000 of equipment, so the journal would show:

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