1. © 2014 Cengage Learning. All Rights Reserved. Do Now ●In your notebooks: ●Using a T-account, journalize the transaction: ●Jan 2. Received Cash from owner as an investment, $2,000.00. Receipt No. 1 ●Make the journal entry and then post to the proper accounts within the general ledger ●Remember to assign an account number SLIDE 1 LO5 Lesson 4-2

2. © 2014 Cengage Learning. All Rights Reserved. Posting an Amount from the Debit Column of a General Journal ●Transferring information from a journal entry to a ledger account is called posting. ●Posting sorts journal entries so that all debits and credits affecting each account are brought together ●Each amount in the debit and credit columns of a general journal is posted to account written in the Account Title Column SLIDE 2 LO5 Lesson 4-2

3. © 2014 Cengage Learning. All Rights Reserved. Posting an Amount from the Debit Column of a General Journal ●Numbers in Post Ref. columns of general ledger account and general journal serve three purposes: 1.Entry in account can be traced to source in journal 2.Entry in journal can be traced to where it was posted in an account 3.If posting was interrupted, the accounting personnel can see which entries in the general journal still need to be posted ●blank in the Post Ref. column of the journal means that posting for that line still needs to be completed (that’s why it’s the last step) SLIDE 3 LO5 Lesson 4-2

4. © 2014 Cengage Learning. All Rights Reserved. Posting an Amount from the Debit Column of a General Journal SLIDE 4 LO5 Lesson 4-2 1. 1.Write the date. 4. 4.Write the new account balance. 2. 2.Write the journal page number. 3. 3.Write the debit amount. 5. 5.Return to the journal and write the account number. 5 5 4 4 1 1 3 3 2 2

5. © 2014 Cengage Learning. All Rights Reserved. Posting an Amount from the Credit Column of a General Journal SLIDE 5 Lesson 4-2 LO5 1. 1.Write the date. 4. 4.Write the new account balance. 2. 2.Write the journal page number. 3. 3.Write the credit amount. 5. 5.Return to the journal and write the account number. 5 5 4 4 1 1 3 3 2 2

6. © 2014 Cengage Learning. All Rights Reserved. Posting a Debit Amount to an Account with a Balance SLIDE 6 Lesson 4-2 LO5 1. 1.Write the date. 4. 4.Write the new account balance. 2. 2.Write the journal page number. 3. 3.Write the debit amount. 5. 5.Return to the journal and write the account number. 5 5 4 4 3 3 1 1 2 2

7. © 2014 Cengage Learning. All Rights Reserved. Posting a Debit Amount to an Account with a Credit Balance SLIDE 7 Lesson 4-2 LO5 1. 1.Write the date. 4. 4.Write the new account balance. 2. 2.Write the journal page number. 3. 3.Write the debit amount. 5. 5.Return to the journal and write the account number. 5 5 4 4 3 3 1 1 2 2

8. © 2014 Cengage Learning. All Rights Reserved. Journal Page with Posting Completed SLIDE 8 LO5 Lesson 4-2

9. © 2014 Cengage Learning. All Rights Reserved. General Ledger with Posting Completed SLIDE 9 LO5 Lesson 4-2

10. © 2014 Cengage Learning. All Rights Reserved. General Ledger with Posting Completed SLIDE 10 LO5 Lesson 4-2

11. © 2014 Cengage Learning. All Rights Reserved. General Journal & General Ledger SLIDE 11 LO1 Lesson 3-1

12. © 2014 Cengage Learning. All Rights Reserved. Proving Cash ●Determining that the amount of cash agrees with the balance of the Cash account in the accounting records is called proving cash. ●Can do at any time, but always do so at the end of the month SLIDE 12 LO6 If the cash balance as shown in the checkbook equals the cash balance in the Cash account, cash is proved. Lesson 4-2

13. © 2014 Cengage Learning. All Rights Reserved. Lesson 4-2 Audit Your Understanding 1.List the five steps of posting from the general journal to the general ledger. SLIDE 13 ANSWER 1.Write the date in the Date column of the account. 2.Write the journal page number in the Post. Ref. column of the account. 3.Write the amount in the Debit or Credit column. 4.Calculate and write the new account balance in the Balance Debit or Balance Credit column. 5.Return to the journal and write the account number in the Post. Ref. column of the journal. Lesson 4-2

14. © 2014 Cengage Learning. All Rights Reserved. Lesson 4-2 Audit Your Understanding 2.When both debit and credit amounts have been posted to an account, what determines whether the balance is a debit or a credit? SLIDE 14 ANSWER Whenever the debits in an account exceed the credits, the balance is a debit. Whenever the credits in an account exceed the debits, the balance is a credit. Lesson 4-2

15. © 2014 Cengage Learning. All Rights Reserved. Lesson 4-2 Audit Your Understanding 3.Which two amounts are compared when proving cash? SLIDE 15 ANSWER The cash balance as shown in the checkbook and the cash balance in the Cash account. Lesson 4-2

16. © 2014 Cengage Learning. All Rights Reserved. Practice Makes Perfect ●Together as a class ●4-2 WT ●Individually/With a Partner: ●4-2 OYO SLIDE 16