1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-1 Preparing a Chart of Accounts

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 4-1 TERMS REVIEW Ledger – a group of accounts general ledger – ledger that contains all accounts needed to prepare financial statements account number – the number assigned to an account file maintenance – Procedure for arranging accounts in a general ledger, assigning account numbers and keeping records current opening an account – writing an account number and title on the heading of an account page 95

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 4-1 RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM page 91 Balance columns

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 4-1 CHART OF ACCOUNTS page 92

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 4-1 ACCOUNT NUMBERS page 92

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 4-1 1.Write the account title. 2.Write the account number. OPENING AN ACCOUNT IN A GENERAL LEDGER page 94 12

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-2 Posting Separate Amounts from a Journal to a General Ledger

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 4-2 TERM REVIEW Posting – transferring information from a journal to a ledger page 99

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 4-2 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the debit amount. 5.Return to the journal and write the account number. POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN page 96 3 5 1 2 4

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 4-2 POSTING A SECOND AMOUNT TO AN ACCOUNT page 97 3 5 1 2 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the debit amount. 5.Return to the journal and write the account number.

11. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 4-2 POSTING AN AMOUNT FROM A GENERAL CREDIT COLUMN page 98 3 5 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the credit amount. 5.Return to the journal and write the account number. 2

12. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-3 Posting Column Totals from a Journal to a General Ledger

13. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON 4-3 CHECK MARKS SHOW THAT AMOUNTS ARE NOT POSTED page 100 Check mark indicates that amounts ARE NOT posted individually. Check mark indicates that general amount column totals ARE NOT posted.

14. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 14 LESSON 4-3 POSTING THE TOTAL OF THE SALES CREDIT COLUMN page 101 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number. 2 3 5

15. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 15 LESSON 4-3 POSTING THE TOTAL OF THE CASH DEBIT COLUMN page 102 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number. 2 5 3

16. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 16 LESSON 4-3 POSTING THE TOTAL OF THE CASH CREDIT COLUMN page 103 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number. 2 5 3

17. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-4 Completed Accounting Forms and Making Correcting Entries

18. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 18 LESSON 4-4 JOURNAL PAGE WITH POSTING COMPLETED page 105

19. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 19 LESSON 4-4 MEMORANDUM FOR A CORRECTING ENTRY page 108

20. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 20 LESSON 4-4 JOURNAL ENTRY TO RECORD A CORRECTING ENTRY page 108 4 Source Document 3 Credit 1 Date 2 Debit 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, $140.00. Memorandum No. 15.

21. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 21 LESSON 4-4 TERM REVIEW correcting entry – journal entry used to correct a previously incorrect entry page 109