2. Accounting & Finance Chapter 4 Posting to a General Ledger

3. Chapter 4 Vocabulary LedgerLedger –A group of accounts General LedgerGeneral Ledger –Ledger that contains all accounts needed to prepare financial statements Account NumberAccount Number –Number assigned to an account File MaintenanceFile Maintenance –Procedure for arranging accounts in a general ledger, assigning account numbers and keeping records current

4. Chapter 4 Vocabulary Opening an AccountOpening an Account –Writing an account title and number on the heading of an account PostingPosting –Transferring information from a journal entry to a ledger account Correcting EntryCorrecting Entry –An additional entry made to correct an improper journal entry

5. Preparing a Chart of Accounts 4-1 Relationship of a T Account to an Account Form DATEITEM POST REF. DEBITCREDIT ACCOUNT Information needed to trace entry back to journal page T Account DEBITCREDIT

6. DATEITEM POST REF. BALANCE DEBIT CREDIT Preparing a Chart of Accounts 4-1 Relationship of a T Account to an Account Form ACCOUNTACCOUNT NO. Balance Columns

7. CHART OF ACCOUNTS Balance Sheet Accounts Income Statement Accounts CHART OF ACCOUNTS 4-1 (100) ASSETS 110 Cash 120 Petty Cash 130 Accounts Receivable – Oakdale School 140 Accounts Receivable – Campus Internet Cafe 150 Supplies 160 Prepaid Insurance (200) LIABILITIES 210 Accounts Payable – Supply Depot 220 Accounts Payable – Thomas Supply Co. (300) OWNER’S EQUITY 310 Kim Park, Capital 320 Kim Park, Drawing 330 Income Summary (400) REVENUE 410 Sales (500) EXPENSES 510 Advertising Expense 520 Insurance Expense 530 Miscellaneous Expense 540 Rent Expense 550 Supplies Expense 560 Utilities Expense TechKnow Consulting

8. ACCOUNT NUMBERS 4-1 General ledger division 1 5 0 Location within general ledger division Supplies Adding New Accounts 510Advertising Expense(Existing Account) 515Gasoline Expense (New Account) 520 Insurance Expense (Existing Account)

9. DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. Opening an Account in a General Ledger 4-1 1 Account Title Cash110 Account Number 2

10. Preparing a Chart of Accounts and Opening an Account W ORK TOGETHER Chapter 4-1 Balance Sheet Accounts Income Statement Accounts (100) ASSETS 110 Cash 120 Accounts Receivable – Megan Alvarez 130 Accounts Receivable – Tyler Link 140 Supplies 150 Prepaid Insurance (200) LIABILITIES 210 Accounts Payable – Mid City Supplies 220 Accounts Payable – Sherer Supplies (300) OWNER’S EQUITY 310 Clara Ross, Capital 320 Clara Ross, Drawing (400) REVENUE 410 Sales (500) EXPENSES 510 Automobile Expense 520 Insurance Expense 530 Miscellaneous Expense 540 Rent Expense Ross Company Chart of Accounts New Accounts 515Gasoline Expense 560Utilities Expense 550 Supplies Expense

11. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 150Supplies 3 275.00 Supplies C1 150 1Date 3 Debit Amount 4 Account Balance 275.00 5 Account Number Aug. 3 2 Journal Page 1 Posting Separate Amounts from a Journal to a General Ledger 4-2 Posting an Amount from a General Debit Column

12. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 150Supplies 275.00 2001 Aug. 3 1 3 275.00 Supplies C1150 1Date 3 Debit Amount 4 Account Balance 2 Journal Page Posting Separate Amounts from a Journal to a General Ledger 4-2 Posting a Second Amount to an Account 150 500.00 7 SuppliesM1 A/P Supply Depot 500.00 5 Account Number 7 775.00 1

13. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 310Kim Park, Capital 20XX Aug. 1 5000.00 Kim Park, Capital R1 310 1Date 3 Credit Amount 4 Account Balance 5000.00 5 Account Number 2 Journal Page 1 Posting Separate Amounts from a Journal to a General Ledger 4-2 Posting an Amount from a General Credit Column Aug. 1 20XX

14. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 310Leonard Witkowski, Capital 5000.00 2001 Mar. 1 1 5000.00 L.Witkowski,CapitalR1 3104-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2

15. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 140Prepaid Insurance 660.00 Mar. 31 3 660.00 Prepaid InsuranceC1 140 4-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2

16. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 130Supplies 78.00 Mar. 41 4 78.00 Supplies M11304-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2 78.00 A/P Joshua’s Supplies

17. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 210Accounts Payable, Joshua’s Supplies 78.00 Mar. 41 4 78.00 Supplies M1 2104-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2 78.00 A/P Joshua’s Supplies 130

18. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 120Accounts Receivable, Danielle Braastad 163.00 Mar. 91 9 163.00 A/R D. BraastadS1 1204-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2

19. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 510Rent Expense 375.00 Mar.121 12 375.00 Rent ExpenseC25104-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2

20. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 210Accounts Payable, Joshua’s Supplies 78.00 Mar. 41 15 50.00 A/P Joshua’s Supp.C32104-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2 15 1 50.0028.00

21. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 16 100.00 A/R D. BraastadR21204-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 120Accounts Receivable, Danielle Braastad 163.00 Mar. 91 151 100.0063.00

22. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. 320Leonard Witkowski, Drawing 1000.00 Mar.251 25 1000.00 L.Witkowski,Draw.C43204-2 Posting Separate Amounts to a General Ledger W ORK TOGETHER Chapter 4-2

23. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 20 7960.005000.00 Brought Forward Posting Column Totals from a Journal to a General Ledger 4-3 Check Marks show that Amounts are NOT Posted 31 T31 A/P Ling Music Aug 1284.002439.0012319.00 M3 290.00 300.00 8979.00 1284.004411.001429.00 6019.00 ( )

24. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. Posting Column Totals from a Journal to a General Ledger 4-3 Posting the Total of the Sales Credit Column

25. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. Posting Column Totals from a Journal to a General Ledger 4-3 Posting the Total of the Cash Debit Column

26. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. Posting Column Totals from a Journal to a General Ledger 4-3 Posting the Total of the Cash Credit Column

27. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2 20 7960.005000.00 Brought Forward Completed Accounting Forms and Making Correcting Entries 4-4 Journal Page with Posting Completed 21 T21 Aug 1284.002439.0012319.00 270.00 300.00 24 25 26 27 Utilities Expense T24 T25 T26 T27 C10560 310.00 245.00 70.00 290.00

28. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2 28 434.00 Supplies Completed Accounting Forms and Making Correcting Entries 4-4 Journal Page with Posting Completed cont. 28 T28 267.00 7.0012.00 31 Misc. Expense C12 C13 M3 150 310.00 245.00 70.00290.00 31Totals Misc. Expense Advertise Expense B.Trevino, Draw. T31 C11 5.00 530 510 320 530 500.00 3.00 8979.001284.004411.0014291.006019.00 410110 ( )

29. ITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. Cash Aug. 312 DATE 14291.00 2001 110 6019.008272.00 DATE ITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. Petty Cash120 Aug. 17 200.00 1 2001 2 DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. Accounts Receivable – Kids Time130 Aug. 12 12 200.00 100.00 1 1 2001

30. DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO. DATEITEM POST REF. BALANCE DEBIT CREDIT ACCOUNTACCOUNT NO.

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35. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2 1 140.00 Completed Accounting Forms and Making Correcting Entries Journal Page with Posting Completed cont. Misc. Expense Advertise ExpenseM87 140.00