Professional Documents
Culture Documents
Accounting Cycle To Trial Balance
Accounting Cycle To Trial Balance
Chapter 3
3-1
Learning Objective 1 Journalizing: analyzing and recording business transactions into a journal.
3-2
3-3
Accounting is the process that... analyzes, records, classifies, summarizes, reports, and... interprets.
3-4
3-5
Business Organizations
All three types of business entities use the same basic accounting system. Sole proprietorship
Partnerships Corporations
3-6
3-7
3-8
3 - 13
3 - 14
3 - 15
3 - 16
3 - 17
Account: 1000
Balance debit 5,000 credit
Example
Journal
Date Account and Explanation June 1 Cash Clara J. Capital Initial investment
Page 1
Post Ref. debit 1000 5,000 3010 credit 5,000
3 - 19
Example
Journal
Date Account and Explanation July 3 Phone Expense Accounts Payable Paid phone bill
Page 1
Post Ref. debit 5040 155 2000 credit 155
3 - 20
Example
Journal
Date Account and Explanation July 6 Insurance Expense Cash Paid insurance bill
Page 1
Post Ref. debit 5060 150 1000 credit 150
3 - 21
Example
Journal
Date
Page 1
credit 200
Account and Explanation Post Ref. debit July 8 Accounts Payable 2000 200 Cash 1000 Paid Accounts Payable
3 - 22
Example
Journal
Date Account and Explanation July 8 Accounts Receivable Service Revenue Performed Services
Page 1
Post Ref. debit 1020 850 4000 credit 850
3 - 23
Learning Objective 3
3 - 24
3 - 26
3 - 27
End of Chapter 3
3 - 28