Page 127 - Bus101FlipBook

CH 7] Business 101 7-7

Figure 7.4 Sample Page from an Accounting Journal and Sample Ledger Accounts

General Journal Page 1 NOTES:

Accounting Journal The General Journal is a record of
general entry for income and
expenses. Similar to your check
DATE 20XX ACCOUNT TITLES and EXPLANATION DEBIT CREDIT book register.

May 1 Accounts Receivable -- Joe Acosta 3,600.00
Sales Revenues 3,600.00 These values are transferred with
To record sale of merchandise on account postings to the appropriate
accounts as affected. In this
May 5 Machinery and Equipment 16,000.00 example the accounts are Cash
Accounts Payable -- FMC 16,000.00 and Accounts Receivable.
To record purchase of equipment on account

May 15 Accounts Payable -- FMC 10,000.00
Cash 10,000.00
To record payment on account

May 22 Cash 2,000.00
Accounts Receivable --Joe Acosta 2,000.00
To record Collection on account

CASH Account Number 101
The Cash account, an Asset
Ledger Account account, holds the income and
expenses record for those
DATE 20XX DEBIT CREDIT BALANCE transactions affecting cash.

May 1 14,000.00

May 15 FMC 10,000.00 4,000.00

May 22 Joe Acosta 2,000.00 6,000.00

7

Accounts Receivable Account Number 106

Ledger Account Accounts Receivable, an Asset
account, is a record of those
amounts and individuals who owe
DATE 20XX DEBIT CREDIT BALANCE money to the firm. Je Acosta
purchased $3,600 of merchandise
May 1 50,000.00
on credit. Then paid $2,000 to
May 1 Joe Acosta 3,600.00 53,600.00 reduce the total amount owed.

May 22 Joe Acosta 2,000.00 51,600.00

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