MODULE 5A

The Accounting Cycle of the Process - Recording Phase (Journalizing - Service Business)

THE ACCOUNTING CYCLE

▪ The process of preparing financial statements consists of series of steps with first step and last step. This is considered
as one accounting cycle.
▪ It is a cycle because these steps must be performed by the accounting department during one accounting period that
covers twelve months, whether it is a calendar year or a fiscal year basis. Then, at the beginning of the next accounting
period, the complete process of the accounting cycle will be repeated again.
- Therefore, the accounting cycle is a routine process every accounting period.
▪ The accounting cycle is divided into two major processes, namely: (1) the recording process; and (2) the summaring
process.
▪ The number of steps of the accounting process differs from different textbooks. For our discussion, we will consider the
ten steps but in the end, we will reduce it to eight steps.
a) Recording Process
1) Identify the transaction from source documents.
2) Analyze each transaction for its effect on the accounts of the accounting equation.
3) Enter the transactions in the book of original entry called the journal. This is called Journalizing.
4) Transfer the journal information to the appropriate final book of accounts called ledger. This is called Posting
to the Ledger.
b) Summarizing Process
5)
6)
7)
8)
9)
10)

RECORDING PROCESS
(Bookkeeping Function)

SUMMARIZING
PROCESS

THE RECORDING PROCESS

▪ This is also called the recording phase.
▪ This includes the analysis of the business transactions we previously discussed.
▪ This consists of the following four (4) basic steps, as follows:
1) Identify the transaction from source documents.
2) Analyze each transaction for its effect on the accounts of the accounting equation.
3) Enter the transactions in the book of original entry called the journal. This is called Journalizing. This is the main
topic under this Module 5A.
4) Transfer the journal information to the appropriate final book of accounts called ledger. This is called
Posting to the Ledger. This will be discussed in Module 5B.

▪ STEP 1 - Identify the transaction from source documents.

- The objectivity principle of accounting states that all transactions that must be recorded in the accounting books of
the entity must be supported by business documents. Without these, no business transaction will be recorded.
Otherwise, these transactions are considered as fictitious transactions.

- Business documents are designed to capture the important details of every business trannsaction that can be used
by the business entity for future reference, but more importantly for accounting purposes.
▪ There is no one fixed design of every business document because it depends on the nature of busines
operations and what informason are important for the entity to be captured based on internal and external
reporting requirements, and may be based on their experiences in the past or experience of other entities
where they learned their lessons.
▪ Therefore, every format or design of business documents of a certain business entity is unique when
compared to other business entities.
 - Business documents have the following common characteristics:
1) There are signatories for these business documents, but not limited to, as follows:
a) The employee who is authorized to prepare the document on the "Prepared by" section.
b) The employee who is authorized to check the details of the transaction on the "Checked by" section.
c) The employee who is authorized to approve the transaction on the "Approved by" section.
2) It is prepared in at least two (2) copies. The last copy should always be the file copy of the issuing entity and
the reference of the accounting department in recording the business transaction.
3)
It is prenumbered which means with series of number from number 1 onwards. This is to control the number
of business transaction. One missing series of business document may mean one business transaction that
may not be recorded in accounting books. This should be investigated for it may lead to fraud or irregularities.

- Basically, business transactions are grouped into four as follows:

1) Cash receipt transactions
▪ These are receipts of cash from all sources like owners or investors and customers.
▪ These transactions are supported by Official Receipts.
2) Cash disbursements transactions
▪ These are disbursements of cash for whatever purposes like withdrawals of owners, payment to creditors
and suppliers of goods and services that includes operating expenses. This also includes payments for the
acquisitions of property and equipment.
▪ These transactions are supported by any of the following:
a) Cash Voucher - if the payment is in the form of cash.
b) Check Voucher - if the payment is in the form of checks.
c) Petty Cash Voucher - if the source of cash payment is from fund set asid to pay small or petty
expenses called Petty Cash Fund.
3) Purchases transactions
▪ These are transactions that involve acquisition of goods, services, properties and others.
▪ These transactions are supported by Purchase Order which will be sent to suppliers of such items
previously mentioned.
4) Sales transactions
▪ These are transactions that involve sales of goods (for merchandising and manufacturing businesses) and
services (for service business).
▪ These transactions are supported Invoice:
a) Sales Invoice - This is for sale of goods to customers.
b) Service Invoice - This is for sale or rendering of services to customers.

- As discussed above, business transactions are captured first by these business documents. One of copy of these
documents is sent to accounting department for recording in accounting books.
▪ Therefore, every accounting personnel must know how to identify the nature of business transactions captured
by these busines documents.

INPUTS OUTPUTS

Business Financial
Accounting Process
Transactions Statements

Official Income
Receipt 1. Journalizing Statement
2. Posting to the ledger
Sales 3. Preparation of preliminary trial balance Statement of
Invoice 4. Preparation of worksheet Financial Position
5. Preparation of adjusting entries
6. Preparation of the financial statements Statement of
Vouchers
7. Preparation of closing entries Changed in Equity
8. Preparation of the post closing trial balance
9. Reversing the adjusting entries Statement of
Others
Cash Flows

▪ Step 2 - Analyze each transaction for its effect on the accounts of the accounting equation.
- This what we discussed in Module 3 (Exanded Accounting Equation and Transaction Analysis) and Module 5 (Rules
of Debit and Credit).

THE RECORDING PROCESS - JOURNALIZING

▪ Step 3 - Enter the transactions in the book of original entry.
- This is also called Journalizing.
- It is called journalizing because the analyzed business transactions in terms of debit and credit is formally recorded
in the journal which is the book of original entry.
▪ It is called the book of original entry because thisis the very first accounting books where business transactions
are recorded for the first time.
▪ Journals have the following information:
1) Page number
- It is written on upper right of the journal.
2) The heading entitled "General Journal".
3) Must have the following column titles:
a) Date
b) Account Names
c) Folio (F) or Cross Reference
d) Debit
e) Credit
 ▪ There are two kinds of journals are as follows:
1) General Journal
- The simplest form of journal because it consists only of two money columns - one for the debit and
one for the credit.
- This is called general journal because all types of or the general business transactions are recorded in
this accounting book.
- This is also known as the two-column journal because it consists of two (2) money columns.
- In reality, using only general journals as books of original entry is time consuming on the part of the
bookkeeper. This is also the reason why special journals are designed for this purpose.
GENERAL JOURNAL 1

Date Particulars F Debit Credit

1 2019 1
2 Aug. 1 Cash 110 1 0 0 0 0 0 - 2
3 A. Cruz, Capital 315 1 0 0 0 0 0 - 3
4 Investment of cash. 4
5 5
6 3 Rent Expense 510 1 5 0 0 0 - 6
7 Cash 110 1 5 0 0 0 - 7
8 Paid rent for the month. 8
9 9

2) Special Journal
- The complex form of journal because it consists of more than two money columns - one or more
debit columns for each commonly used account name and one or more credit columns for each
commonly used account.
- See Appendix for further discussion. This will be discussed in merchandising accounting.

▪ Reminders in recording business transactions in the general journal

In a manual system of accounting, the students should always remember the following when recording business
transaction in the general journal.

1. General journal is a formal accounting record. Therefore, this must be clean, writings are readable, and will not
give a perception of confusion on what is written on this whether in words or in figures.
a) Preferrably, abbreviation should not be used for important words and account names except for month under
the date column.
b) Accronym should be avoided particularly with regards to account names.
c) In case of erroneous entry, preferrably draw a straight-line on the erroneous words or amount and write on
top of it the correct one. The signature of the person who made the correction must be affixed after the
correct words or figure for accountability purposes.

2. Every page of the journal

a) contains page number
b) the caption "General Journal" in the middle on top of the page
c) column title for date, account names, folio (F), debit, and credit.

GENERAL JOURNAL 1

Date Particulars F Debit Credit

1 2022 1
2 Aug. 25 Cash 110 1 0 0 0 0 0 - 2
3 A. Cruz, Capital 315 1 0 0 0 0 0 - 3
4 Investment of cash. 4
5 5

GENERAL JOURNAL 2

Date Account Names F Debit Credit

1 2022 1
2 Sept. 29 Equipment 160 1 2 0 0 0 - 2
3 Accounts Payable 205 1 2 0 0 0 - 3
4 Bought equipment on credit. 4
5 5

3. In writing the date

a) the month (abbreviated) should be written only once for each page unless it is a different month of the
business transaction.
b) the date may be written again if the date of the other transaction is the same as the previous transaction, or
may be written in the form of a "dash" ( - ) to indicate the same date as the previous one.

GENERAL JOURNAL 1

Date Particulars F Debit Credit

1 2022 1
2 Aug. 25 Cash 110 1 0 0 0 0 0 - 2
3 A. Cruz, Capital 315 1 0 0 0 0 0 - 3
4 Investment of cash. 4
5 5
6 25 Rent Expense 510 1 5 0 0 0 - 6
7 Cash 110 1 5 0 0 0 - 7
8 Paid rent for the month. 8
9 9
 Date Particulars F Debit Credit
1 2022 1
2 Aug. 25 Cash 110 1 0 0 0 0 0 - 2
3 A. Cruz, Capital 315 1 0 0 0 0 0 - 3
4 Investment of cash. 4
5 5
6 25 Rent Expense 510 1 5 0 0 0 - 6
7 Cash 110 1 5 0 0 0 - 7
8 Paid rent for the month. 8
9 9
10 Sept. 5 Supplies 130 5 0 0 0 - 10
11 Accounts Payable 205 5 0 0 0 - 11
12 Purchased supplies on 12
13 credit. 13
14 14

4. In writing figures or amounts under the money column

a) never use comma to separate the hundreds, millions, and the likes.
- The red color vertical line of the money column indicates represents already the comma.
b) the two zeroes centavo is preferrably written as a "dash" ( - ).
- Do not leave the centavo blank to prevent others to write any centavo amount that will cause fraud or
irregularities.
c) the further left column of the money column represents cetavos. Moving to the left is ones, tens, hundreds,
thousands, ten thousands, hundred thousands, and millions.

Debit

25 P 0 .25
5 25 5 .25
2 5 25 25 .25
5 2 5 25 525 .25
6 5 2 5 25 6,525 .25
2 6 5 2 5 25 26,525 .25
1 2 6 5 2 5 25 126,525 .25
3 1 2 6 5 2 5 25 3,126,525 .25

5. Do not total the debit and credit columns after every page.

GENERAL JOURNAL 2

Date Account Names F Debit Credit

1 2022 1
2 Sept. 29 Equipment 160 1 2 0 0 0 - 2
3 Accounts Payable 205 1 2 0 0 0 - 3
4 Bought equipment on credit. 4
5 5
6 30 Accounts Payable 205 5 2 3 5 50 6
7 Cash 101 5 2 3 5 50 7
8 Full payment of account. 8
9 9

▪ The T-account in the general journal

- T-account is a skeletal device that shows the increase and decrease of the account wherein the left side is called
the debit side while the right side is called the credit side.
- The body of the skeletal T-account can also be found in the general journal. See below.
GENERAL JOURNAL

Date Account Names F Debit Credit

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9

- Following the basic accounting rules, debit should always be equal to credit. Therefore, all journal entries in the
journal, whether general or special, must have a debit amount that is equal to credit amount. In short, debit entries
should always be equal to credit entries.

▪ The Journal Entries

- The recorded business transactions in the journals are called journal entries that consist of debit entry(ies) and
credit entry(ies) that should always be equal.

- The elements of a complete journal entry are the following:

a) the date of the transaction
b) the account(s) to be debited and its amount(s)
c) the account(s) to be credited and its amount(s)
- This is indented by almost half an inch from the account that is debited to give distintiction that this
account represents a credit entry.
d) brief explanation of the recorded transaction
 - This may be recorded in the journal as follows:
1) Indented by almost half an inch from the account that is credited to give distinction that this is a brief
explanation of the recorded business transaction and not a credit entry. If the line is not enough, the
cotinuation may be recorded in alignment to account that is credited or debited.
- Following this indention, this may also be enclosed in a parenthesis.
2) Aligned to account that is debited.
GENERAL JOURNAL 1

Date Particulars F Debit Credit

1 2022 1
2 Aug. (a) 25 Cash (b) 110 (b) 1 0 0 0 0 0 - 2
3 A. Cruz, Capital (c) 315 (c) 1 0 0 0 0 0 - 3
4 Investment of cash.(d) 4
5 5
6 25 Rent Expense 510 1 5 0 0 0 - 6
- The two kinds of journal entries are as follows:
7 Cash 110 1 5 0 0 0 - 7
1) Simple journal entry
8 Paid rent for the month. 8
▪ This consists of one debit entry and one credit entry.
9 9
▪ This is the result of the analysis of a very simple business transaction that affects only two accounts in the
10 Sept. 5 Supplies 130 5 0 0 0 - 10
accounting equation - one for the debit entry and one for the credit entry.
11 Accounts Payable 205 5 0 0 0 - 11
▪ An example f business transaction with a simple journal entry is the purchase of equipment on credit for P
12 Purchased supplies on 12
12,000.
13 credit. 13
14 GENERAL JOURNAL 2 14

Date Account Names F Debit Credit

1 2022 1
2 Sept. 29 Equipment 160 1 2 0 0 0 - 2
3 Accounts Payable 205 1 2 0 0 0 - 3
4 Bought equipment on credit. 4
5 5

2) Compund journal entry

▪ In compound journal entry, one of the or both entries, debit and credit entries, consist of two or more
accounts recorded.
▪ This is the result of the analysis of a complex business transaction that affects more than one accounts in
the accounting equation.
▪ Examples of business transactions that are recorded in compound journal entry format are as follows:
a) Acquisition of furniture worth P 25,5000 with down payment of P 5,500 and the balane on credit.
b) The owner made an additional investment as follows: cash of P 30,000 and land worth P 500,000.

GENERAL JOURNAL 3

Date Account Names F Debit Credit

1 2022 1
2 Oct. 10 Furniture 160 2 5 5 0 0 - 2
3 Cash 205 5 5 0 0 - 3
4 Accounts Payable 2 0 0 0 0 - 4
5 Bought office table with down 5
6 payment and the balance on credit. 6
7 7
8 14 Cash 3 0 0 0 0 - 8
9 Land 5 0 0 0 0 0 - 9
10 A. Cruz, Capital 5 3 0 0 0 0 - 10
11 Additional investment. 11
12 12

▪ Illustration - Recording the analyzed business transactions in the General Journal

To illustrate, let use the following business transactions of Your Home NetSolutions for the month of July, 2022. This is
the illustrative problem in Module 3. Let us assume that the number represents that date of the business
transactions during July, 2022.
1. Harry Jasper, the business owner, deposits P 2,000,000 cash in a bank account in the name of Your Home Net
Solution.
2. Paid P 1,500,000 in exchange of land.
3. Purchased various supplies for P 13,500 and agreed to pay the supplier in the near future.
4. Earned P 75,000 by painting various cash customers' house.
5. Send bills to various customers for services rendered during the month, P 50,000.
6. Paid the following expenses for the month: Salaries, P 21,500; rental of office space, P 10,000; light and water, P
9,000, and various expenses. P 2,500.
7. Paid creditors, P 9,000.
8. Collection from charge customers, P 20,000.
9. Harry Jasper withdrew cash for personal use, P 10,000.
10. At month end, unused supplies per physical inventory is P 2,000.
11. Received billing from telephone company for the current month, P 5,000.
 The summary of the analysis of its business transactions are the following as illustrated in Module 4.

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
11. Received billing from telephone
company for the current month, P
5,000. Utilities Expense 5,000 Utilities Payable 5,000

The corresponding journane entries in the general journal of the above business transactions are as follows:

Transaction 1 (July 1):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
1. Harry Jasper, the business owner,
deposits P 2,000,000 cash in a bank
account in the name of Your Home Cash 2,000,000 Harry Jasper, Capital 2,000,000
Net Solution.

Date Account Names F Debit Credit

1 2022 1
2 Jul 1 Cash 2 0 0 0 0 0 0 - 2
3 Harry Jasper, Capital 2 0 0 0 0 0 0 - 3
4 Initial investment by owner. 4
5 APPENDIX 5

Transaction 2 (July 2):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
2. Paid P 1,500,000 in exchange of land. Land 1,500,000 Cash 1,500,000

Date Account Names F Debit Credit

1 2022 1
2 Jul 2 Land 1 5 0 0 0 0 0 - 2
3 Cash 1 5 0 0 0 0 0 - 3
4 Acquisition of land for cash 4
5 5

Transaction 3 (July 3):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
3. Purchased various supplies for P
13,500 and agreed to pay the supplier Supplies 13,500 Accounts Payable 13,500
in the near future.

Date Account Names F Debit Credit

1 2022 1
2 Jul 3 Supplies 1 3 5 0 0 - 2
3 Accounts Payable 1 3 5 0 0 - 3
4 Acquisition of supplies on credit. 4
5 5

Transaction 4 (July 4):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
4. Earned P 75,000 by painting various
cash customers' house. Cash 75,000 Service Revenue 75,000

Date Account Names F Debit Credit

1 2022 1
2 Jul 4 Cash 7 5 0 0 0 - 2
3 Service Revenue 7 5 0 0 0 - 3
4 Cash received for house painting. 4

Transaction 5 (July 5):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
5. Send bills to various customers for
services rendered during the month, P Accounts Receivable 50,000 Service Revenue 50,000
50,000.

Date Account Names F Debit Credit

1 2022 1
2 Jul 5 Accounts Receivable 5 0 0 0 0 - 2
3 Service Revenue 5 0 0 0 0 - 3
4 Customer billing for services 4
5 rendered. 5
6 6
 Date Account Names F Debit Credit
1 2022 1
2 Jul 5 Accounts Receivable 5 0 0 0 0 - 2
3 Service Revenue 5 0 0 0 0 - 3
4 Customer billing for services 4
5 rendered. 5
6 6

Transaction 6 (July 6):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
6. Paid the following expenses for the Salaries Expense 21,500 Cash 43,000
month: Salaries, P 21,500; rental of Rent Expense 10,000
office space, P 10,000; light and Utilities Expense 9,000
water, P 9,000, and various expenses. Miscellaneous Exp. 2,500

Date Account Names F Debit Credit

1 2022 1
2 Jul 6 Salaries Expense 2 1 5 0 0 - 2
3 Rent Expense 1 0 0 0 0 - 3
4 Utilities Expense 9 0 0 0 - 4
5 Miscellaneous Expense 2 5 0 0 - 5
6 Cash 4 3 0 0 0 - 6
7 Payment of various expenses. 7
8 8

Transaction 7 (July 7):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
7. Paid creditors, P 9,000. Accounts Payable 9,000 Cash 9,000

Date Account Names F Debit Credit

1 2022 1
2 Jul 7 Accounts Payable 9 0 0 0 - 2
3 Cash 9 0 0 0 - 3
4 Payment to creditors. 4
5 5

Transaction 8 (July 8):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
8. Collection from charge customers, P
20,000. Cash 20,000 Accounts Receivable 20,000

Date Account Names F Debit Credit

1 2022
2 Jul 8 Cash 2 0 0 0 0 -
3 Accounts Receivable 2 0 0 0 0 -
4 Collection from charge customers.
5

Transaction 9 (July 9):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
9. Harry Jasper withdrew cash for
personal use, P 10,000. Harry Jasper, Drawing 10,000 Cash 10,000

Date Account Names F Debit Credit

1 2022 1
2 Jul 9 Harry Jasper, Drawing 1 0 0 0 0 - 2
3 Cash 1 0 0 0 0 - 3
4 Cash wtihdrawal for personal use. 4
5 5

Transaction 10 (July 10):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
10. At month end, unused supplies per
physical inventory is P 2,000. Supplies Expense 11,500 Supplies 11,000
 Date Account Names F Debit Credit
1 2022 1
2 Jul 10 Supplies Expense 1 1 5 0 0 - 2
3 Supplies 1 1 5 0 0 - 3
4 Used portion of supplies. 4
5 5

Transaction 11 (July 11):

DEBIT CREDIT
No. BUSINESS TRANSACTIONS Account Amount Account Amount
11. Received billing from telephone
company for the current month, P
5,000. Utilities Expense 5,000 Utilities Payable 5,000

Date Account Names F Debit Credit

1 2022 1
2 Jul 11 Utilities Expense 5 0 0 0 - 2
3 Utilities Payable 5 0 0 0 - 3
4 Unpaid utilities for the month. 4
5 5

APPENDIX
SPECIAL JOURNALS

SPECIAL JOURNALS
- The complex form of journal because it consists of more than two money columns - one or more debit columns for each
commonly used account name and one or more credit columns for each commonly used account.
- See Appendix for further discussion. This will be discussed in merchandising accounting.
- There are four (4) special journal that are commonly used and these are as follows:
1) Cash Receipts Journal
a) All cash receipts transactions are recorded in this special journal.
b) Also called cash receipts book or cash receipts register.
c) A debit column for cash is necessary to record cash receipt.
d) Other debit and credit columns are for accounts commonly used for cash receipt transactions.
CASH RECEIPTS JOURNAL 1

OR Cash Accounts Rec. Service Income SUNDRY COLUMN

Date Received From Transactions No. (Debit) (Credit) (Credit) Account Name F (Credit)
1 2022
2 Aug. 1 Anselmo Cruz Initial investment 001 100000 - A. Cruz, Capital 100000 -
3 7 Cassey Marketing, Inc. Services rendered 002 10000 - 10000 -
4 10 DJ Manpower Services Partial collection of accounts 003 5000 - 5000 -
5
6

2) Cash Disbursement Journal

a) All cash payment transactions are recorded in this special journal.
b) Also called cash payment book or cash payment register.
c) A credit column for cash is necessary to record cash disbursements..
d) Other debit and credit columns are for accounts commonly used for cash payment transactions.
CASH DISBURSEMENTS JOURNAL 1

CV Cash Accounts Payable SUNDRY COLUMN

Date Paid To Transactions No. (Credit) (Debit) Account Name F (Debit) (Credit)
1 2022 1
2 Aug. 1 Jack Repair Services Repair of equipment 001 6 0 0 0 - Repair Expenses 6000 - 2
3 3 National Bookstore Various office supplies 002 3 0 0 0 - Supplies 3000 - 3
4 5 Mark Niccolo Partial payment of account 003 15 0 0 0 - 5000 - 4
5 7 Anselmo Cruz Owner's withdrawal 004 5 0 0 0 - A. Cruz, Withdrawal 5000 - 5
6 9 Quality Furniture Corp. Acquisition of office table 005 8 0 0 0 - Office Equipment 5000 6
7 7

3) Purchase Journal
a) All credit purchase transactions are recorded in this special journal.
b) Cash purchase transactions are not recorded in this journal but in cash disbursement journal.
c) Also called purchase book or purchase register.
d) A credit column for Accounts Payable is necessary to record purchases on credit basis.
e) Other columns, both for debit and credit, are for accounts commonly used for these transactions.
 PURCHASE JOURNAL 1

PO Accounts Payable Supplies SUNDRY COLUMN

Date Purchased From Transactions No. (Credit) (Debit) Account Name F (Debit) (Credit)
1 2022 1
2 Aug. 15 Pandayan Bookshop Various supplies 001 12000 - 12000 - 2
3 20 Computer Technology Co. One unit of laptop 002 30000 - Office Equipment 30000 - 3
4 25 Filipino Muebles, Inc. Five office tables 003 20000 - Office Furniture 20000 - 4
5 5

4) Sales Journal
a) All credit sales transactions of goods and services are recorded in this special journal.
b) Cash sales transactions are not recorded in this journal but in cash receipts journal.
c) Also called sales book or sales register.
d) A debit column for Accounts Receivable is necessary to record sales on credit basis.
e) Other columns, both for debit and credit, are for accounts commonly used for these transactions.

SALES JOURNAL 1

INV Accounts Receiv. Sales Revenue SUNDRY COLUMN

Date Sold To No. (Debit) (Credit) Account Name F (Debit) (Credit)
1 2022 1
2 Aug. 1 Sheena Thompson 001 5 0 0 0 - 5 0 0 0 - 2
3 2 Dallas Company 002 3 0 0 0 - 3 0 0 0 - 3
4 3 Golden Hands Corp. 003 5 0 0 0 - 5 0 0 0 - 4
5 5 Famous Company 004 2 0 0 0 - 2 0 0 0 - 5
6 - 6

SALES JOURNAL 1

INV Accounts Receiv. Fees Earned SUNDRY COLUMN

Date Sold To Transactions No. (Debit) (Credit) Account Name F (Debit) (Credit)
1 2022 1
2 Aug. 1 Maria Aguilera Tax consultancy 001 1 0 0 0 - 1 0 0 0 - 2
3 2 ABC Company Managament constancy 002 2 0 0 0 - 2 0 0 0 - 3
4 3 Cooper Corp. Monthly audit 003 5 0 0 0 - 5 0 0 0 - 4
5 5 Manila Company Bookkeeping services 005 1 0 0 0 - 1 0 0 0 - 5
6 - 6
EXERCISES

EXERCISE 1
Preparation of Journal Entries
Using your answers in Exercise 8 of Module 4, prepare necessary the journal entries. Use the letter that corresponds to
business transactions as your date.