1. ????

2. RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM Lesson 5-1, page 96 Why do we “post”? To summarize all of the changes to an account in one place How much money have we spent on utilities this year? How much cash do we have? the “balance-ruled account form”

3. OPENING AN ACCOUNT IN A GENERAL LEDGER Lesson 5-1, page 99 1 1.Write the account title. 2.Write the account number. 2 Ledger – a group of accounts General Ledger – a ledger that contains all accounts needed to prepare financial statements This green form represents 1 single ledger account

4. CHART OF ACCOUNTS – file maintenance Lesson 5-1, page 97 Leave 10 between accounts….room to grow Repair Expense account – 545 Accounts Payable – McNutty Music – 215 Listed by decreasing liquidity – how fast each can be turned into cash EXPENSES listed alphabetically CDICDI

5. ACCOUNT NUMBERS Lesson 5-1, page 97 **Smaller companies will have fewer numbers in their account numbers than larger companies

6. Work Together 5-1 (p.100 wb65) & On Your Own 5-1 (p.100 wb66)

7. POSTING AN AMOUNT FROM THE DEBIT COLUMN OF A GENERAL JOURNAL (5…count ‘em…5 steps) 1 1.Write the date. 2 2.Write journal page number. 3 3.Write the debit amount. 4 4.Write new account balance. 5 5.Write the account number in the Post. Ref. column of the journal. Lesson 5-2, page 101

8. 3 3.Write the credit amount. 4 4.Write the new account balance. 5 5.Write the account number in the Post. Ref. column of the journal. Lesson 5-2, page 102 2.Write the journal page number. 2 1.Write the date. 1 POSTING AN AMOUNT FROM A CREDIT COLUMN OF A GENERAL JOURNAL

9. POSTING A DEBIT AMOUNT TO AN ACCOUNT WITH A BALANCE Lesson 5-2, page 103 5.Write the account number in the Post. Ref. column of the journal. 5 4.Write the new account balance. 4 3.Write the debit amount. 3 2.Write the journal page number. 2 1.Write the date. 1 If credits exceed debits, the balance is a credit If debits exceed credits, the balance is a debit

10. Calculating Balances Calculating Balances Calculating Balances Calculating Balances

11. What is the purpose of the Post. Ref. Columns? n An entry in an account can be traced back to its source in a journal n An entry in a journal can be traced to where it was posted in an account n If posting is interrupted, the accounting personnel can easily see which entries in the general journal still need to be posted A blank in the Post. Ref. Column of the journal indicates that posting for that line still needs to be completed The LAST step of posting is listing the posting reference Lesson 5-2, page 101

12. Work Together 5-2 (p.105 wb67-70) next slides & On Your Own 5-2 (p.105 wb71-74)

13. Completed Journal – wb 67 WT -18 on a test!

14. Accounts Receivable – Danielle Braastad (wb 69) Accounts Receivable – Danielle Braastad (wb 69) Prepaid Insurance (wb 69) Prepaid Insurance (wb 69) Accounts Payable - Joshua’s Supplies (wb 70) Accounts Payable - Joshua’s Supplies (wb 70) Sales (wb 70) Sales (wb 70) Rent Expense (wb 70) Rent Expense (wb 70) Leonard Witkowski, Capital (wb 70) Leonard Witkowski, Capital (wb 70) Leonard Witkowski, Drawing (wb 70) Leonard Witkowski, Drawing (wb 70) Supplies (wb 69) Supplies (wb 69) Cash (wb 69) Cash (wb 69)WT

15. Cash, A/R – Danielle Braastad WT – p.69 + - Blue=individual amount coming in Yellow=running “balance” of what is in that account as of that date

16. Supplies, Prepaid Insurance WT – p.69 + - Blue=individual amount coming in Yellow=running “balance” of what is in that account as of that date

17. A/P, Capital, Drawing WT – p.70 + - - + Blue=individual amount coming in Yellow=running “balance” of what is in that account as of that date

18. Sales, Rent Expense WT – p.70 - + + - Blue=individual amount coming in Yellow=running “balance” of what is in that account as of that date

19. PROVING CASH Lesson 5-3, page 109 Determining that the amount of cash (on your check stub)agrees with the balance of the cash account in the accounting records Can be done at any time, but must be done at the end of the month

20. MEMORANDUM FOR A CORRECTING ENTRY Lesson 5-3, page 109 Prepared to describe the correction for errors in the journal O.E. When errors have been posted to the ledger

21. JOURNAL ENTRY TO RECORD A CORRECTING ENTRY November 13. Discovered that a payment of cash for advertising in October was journalized and posted in error as a debit to Miscellaneous Expense instead of Advertising Expense, $120.00. Memorandum No. 45. What DID happen? Miscellaneous Expense (+)120.00 Cash (-)120.00 What SHOULD have happened? Advertising Expense (+) 120.00 Cash (-) did happen, so leave it alone 120.00 How do we fix it? Advertising Expense (+) 120.00 Miscellaneous Expense (-) 120.00 Lesson 5-3, page 110

22. 3.Credit Miscellaneous Expense. JOURNAL ENTRY TO RECORD A CORRECTING ENTRY 1. Write the date. 4.Write the source document number. 2.Debit Advertising Expense. 13 4 2 Lesson 5-3, page 110

23. Work Together 5-3 (p.111 wb75) & On Your Own 5-3 (p.111 wb76) WT OYO

24. Complete Application Problems 5-1, 5-2, 5-3, & Mastery 5-4