L2 Journalizing

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JOURNALIZIN

G
Hello!
■ I’m Jzietel (Zaitel) Angel P. Alemania
■ Ate Dzai for short
■ Validus Batch / Covid Graduate
■ Follow me if you will it
○ Twitter: @japacpa
○ IG: @jumping.jzietelita and @angeljzietel

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Definition
Journalizing
-the act of recording effects of the business
transactions in the general journal. These
effects of transactions are analyzed and firstly
recorded in the journals.
-other term for recording
-journalize business transactions only

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Two Accounting Books
Journal Ledger
-book of original entry -book of final entry
-Accounting Process: -Accounting Process:
journalizing or recording posting

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Other Terminologies
Journalizing Journalization Journal Entry
-the act of -the process of -the record made in
recording effects of recording effects of the journal
the business the business
transactions in the transactions in the
journal journal

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Journals
General Journal Special Journals
-all-purpose book of -for repetitive
original entry transactions such as
sales, purchases, cash
receipts and cash
disbursement.

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GENERAL JOURNAL
-Book of Original Entry

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GENERAL JOURNAL
-Book of Original Entry
-Name of company


Debit Account
Credit Account
-Explanation
Peso column -Centavo Column

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Quick Recap on Rules of Normal Balances,
Debits and Credits
Account Title Normal Balance Debit Credit

Assets Debit Increase Decrease

Liabilities Credit Decrease Increase

Equity Credit Decrease Increase

Income/Revenue Credit Decrease Increase

Loss/Expense
Debit Increase Decrease
/Cost
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Procedures in Journalizing
1 Label the parts of the general journal

2 Record Date

3 Record debit account and amount

4 Record credit account and amount

5 Write a brief explanation

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Sexy Co.
Chart of Accounts
Assets Liabilities Equity Income Expense

○Cash ○Accounts Payable ○C. Baddie ,Capital ○Service Revenue ○ Advertising Expense
○Accounts ○Salaries Payable ○C Baddie ,Drawings ○ Bad Debts Expense
Receivable ○ Depreciation
○Prepaid Rent Expense
○Prepaid Insurance ○ Insurance Expense
○Gym Equipment ○ Rent Expense
○Accumulated ○ Salaries Expense
Depreciation - Gym ○ Utilities Expense
Equipments

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Sexy Co.
Business Transactions

August 1 - Ms. Coca-Cola Baddie invested Php


500,000 to start her Fitness Gym

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1 Label the parts of the general journal 14


Aug 1

1 Lab2el theReco thee general journal


partsrdofDat
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Aug 1 Cash 500,000 00

1 Lab2el theReco
3 srdofDat
part thee gene
Reco debjour
rd ral nalunt and amount
it acco
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Aug 1 Cash 500,000 00
Capital, C. Baddie 500,000 00

1 Lab2el theReco
3 srdofDat
part the
Reco 4 rd ral
e gene deb jour nalcred
it acco
Reco rd unt and amo
it acco unt
unt and amount
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Aug 1 Cash 500,000 00
Capital, C. Baddie 500,000 00


>Owner’s Initial Investment

1 Lab2el theReco
3 srdofDat
part the
Reco 4 rd ral
e gene deb it 5acco
jour
Reco nalcred
rd unt
Wriand aamo
itteacco unt
unt
brie explamo
f and unt
anation
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Sexy Co.
Business Transactions

Aug 1 - Purchased Gym Equipment from Awra Glass worth Php


150,000 on credit. Estimated useful life is 5 years with a salvage
value of Php 30,000. Depreciated in a straight-line method.

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Aug 1 Cash 500,000 00
Capital, C. Baddie 500,000 00


>Owner’s Initial Investment

Aug 1 Gym Equipment 150,000 00


Accounts Payable 150,000 00
>Purchase gym equipment on credit

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Sexy Co.
Business Transactions

Aug 2 - Paid Php 3,000 to advertise her gym.

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Aug 1 Cash 500,000 00
Capital, C. Baddie 500,000 00


>Owner’s Initial Investment

Aug 1 Gym Equipments 150,000 00


Accounts Payable 150,000 00
>Purchase gym equipment on credit

Aug 2 Advertising Expense 3,000 00


Cash 3,000 00
>Paid cash for advertising

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Sexy Co.
Business Transactions

Aug 3 - Received Php 50,000 cash for service rendered.

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Aug 3 Cash 50,000 00
Service Revenue 50,000 00


>Billed customers for using the gym

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Sexy Co.
Business Transactions

Aug 5 - Paid insurance in advance for 3 months starting


August, Php 1,500.

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Aug 3 Cash 50,000 00
Service Revenue 50,000 00


>Billed customers for using the gym

Aug 5 Prepaid Insurance 1,500 00


Cash 1,500 00
>Paid Insurance in advance for 3 months
Starting August

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Sexy Co.
Business Transactions

Aug 7 - Withdrew Php 2,000 for personal use.

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Aug 3 Cash 50,000 00
Service Revenue 50,000 00


>Billed customers for using the gym

Aug 5 Prepaid Insurance 1,500 00


Cash 1,500 00
>Paid Insurance in advance for 3 months
Starting August

Aug 7 Drawings, C. Baddie 2,000 00


Cash 2,000 00
>Withdrew for personal use

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Sexy Co.
Business Transactions

Aug 10 - Paid 1/3 of the gym equipment amount to Awra Glass last
August 1

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Aug 10 Accounts Payable (150,000/3) 50,000 00
Cash 50,000 00


>Paid ⅓ of the credit from Awra Glass

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Sexy Co.
Business Transactions

Aug 13 - Billed customers Php 25,000 on credit for service rendered.

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Aug 10 Accounts Payable 50,000 00
Cash 50,000 00


>Paid ⅓ of the credit from Awra Glass

Aug 13 Accounts Receivable 25,000 00


Services Revenue 25,000 00
>Billed customers on credit for service rendered

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Sexy Co.
Business Transactions

Aug 15 - Paid salaries to employees, Php 12,000

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Aug 10 Accounts Payable 50,000 00
Cash 50,000 00


>Paid ⅓ of the credit from Awra Glass

Aug 13 Accounts Receivable 25,000 00


Services Revenue 25,000 00
>Billed customers on credit for service rendered

Aug 15 Salaries Expense 12,000 00


Cash 12,000 00
>Paid salaries to employees

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Sexy Co.
Business Transactions

Aug 18 - Paid rent of Php 6,000 each month in advance for August
and September

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Aug 18 Prepaid Rent (6,000 x 2) 12,000 00
Cash 12,000 00


>Paid rental for August and September

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Sexy Co.
Business Transactions

Aug 21 - Paid for water and electricity (Utilities Expense) for the
month of August, Php 1,500

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Aug 18 Prepaid Rent (6,000 x 2) 12,000 00
Cash 12,000 00


>Paid rental for August and September

Aug 21 Utilities Expense 1,500 00


Cash 1,500 00
>Paid for electricity and water

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Sexy Co.
Business Transactions

Aug 28 - Collected cash from August 13, Php 12,500

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Aug 18 Prepaid Rent (6,000 x 2) 12,000 00
Cash 12,000 00


>Paid rental for August and September

Aug 21 Utilities Expense 1,500 00


Cash 1,500 00
>Paid for electricity and water

Aug 28 Cash 12,500 00


Accounts Receivable 12,500 00
>Collection from customers account

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Exercise
Chart of Accounts Ms. Maycee Patos invests in a Shoe and Bag Repair Shop. The following
transaction took place in August of the current year
● Assets
i. Cash in Bank Aug 1 The owner invests Php 50,000 cash which she deposited in the
ii. Accounts Receivable bank
iii. Shop Supplies Inventory 3 Borrowed money from the same bank an amount of Php 80,00 by
iv. Prepaid Interest signing a note with an interest deducted in advance of Php 10,000 for
● Liabilities 1 year in a net proceeds of Php 70,000
i. Accounts Payable 5 Bought various shop supplies on account, Php 10,000
ii. Bank Loan Payable 7 Rendered repair services to various customers on account, Php 4,500
● Equity 9 Partially paid the August 5 account, Php 5,000
i. M. Patos, Capital 14 Paid space rental for the month, Php 1,500
19 Rendered repair services for cash, Php 25,000
ii. M. Patos, Drawings
22 The owner withdrew cash of Php 9,000 for personal use.
● Income
25 Paid taxes and licenses, Php 1,700
i. Service Revenue
27 Paid light and water bills (Utilities Expense), Php 800
● Expenses
i. Rental Expense
ii. Taxes and Licenses
iii. Utilities Expense 41
Thank you!
Never stop striving to turn your dreams into
reality! 42

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