LESSON 4-1 Preparing a Chart of Accounts GREEN

RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM page 91 Balance columns LESSON 4-1

CHART OF ACCOUNTS page 92 LESSON 4-1

ACCOUNT NUMBERS page 92 LESSON 4-1

OPENING AN ACCOUNT IN A GENERAL LEDGER LESSON 4-1 OPENING AN ACCOUNT IN A GENERAL LEDGER page 94 1 2 1. Write the account title after the word Account in the heading. 2. Write the account number after the words Account No. in the heading. LESSON 4-1 GREEN

TERMS REVIEW Ledger – a group of accounts page 95 Ledger – a group of accounts general ledger – a ledger that contains all accounts needed to prepare financial statements account number – the number assigned to an account LESSON 4-1

TERMS REVIEW page 95 file maintenance – the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current opening an account – writing an account title and number on the heading of an account LESSON 4-1

LESSON 4-2 Posting from a General Journal to a General Ledger 4/6/2017 LESSON 4-2 Posting from a General Journal to a General Ledger GREEN

POSTING AN AMOUNT FROM THE DEBIT COLUMN OF A GENERAL JOURNAL page 96 2 1 3 5 4 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 5. Return to the journal and write the account number. 3. Write the debit amount. LESSON 4-2

POSTING AN AMOUNT FROM THE CREDIT COLUMN OF A GENERAL JOURNAL LESSON 4-2 4/6/2017 POSTING AN AMOUNT FROM THE CREDIT COLUMN OF A GENERAL JOURNAL page 97 2 1 5 3 4 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 5. Return to the journal and write the account number. 3. Write the credit amount. LESSON 4-2 GREEN

POSTING A DEBIT AMOUNT TO AN ACCOUNT WITH A DEBIT BALANCE page 98 2 1 3 5 4 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 5. Return to the journal and write the account number. 3. Write the debit amount. LESSON 4-2

POSTING A DEBIT AMOUNT TO AN ACCOUNT WITH A CREDIT BALANCE page 99 2 1 3 5 4 1. Write the date. 4. Write the new account balance. 2. Write the journal page number. 5. Return to the journal and write the account number. 3. Write the debit amount. LESSON 4-2

JOURNAL PAGE WITH POSTING COMPLETED (continued on next slide) LESSON 4-2

JOURNAL PAGE WITH POSTING COMPLETED LESSON 4-2 4/6/2017 JOURNAL PAGE WITH POSTING COMPLETED page 100 (continued from previous slide) LESSON 4-2 GREEN

TERM REVIEW page 101 Posting – transferring information from a journal entry to a ledger account LESSON 4-2

Completed General Ledger, Proving Cash, and Making Correcting Entries LESSON 4-3 4/6/2017 LESSON 4-3 Completed General Ledger, Proving Cash, and Making Correcting Entries GREEN

GENERAL LEDGER WITH POSTING COMPLETED LESSON 4-3 4/6/2017 GENERAL LEDGER WITH POSTING COMPLETED page 102 (continued on next slide) LESSON 4-3 GREEN

GENERAL LEDGER WITH POSTING COMPLETED page 103 (continued on next slide) LESSON 4-3

GENERAL LEDGER WITH POSTING COMPLETED page 103 (continued on next slide) LESSON 4-3

GENERAL LEDGER WITH POSTING COMPLETED page 104 (continued on next slide) LESSON 4-3

GENERAL LEDGER WITH POSTING COMPLETED page 104 (continued on next slide) LESSON 4-3

GENERAL LEDGER WITH POSTING COMPLETED page 105 (continued on next slide) LESSON 4-3

GENERAL LEDGER WITH POSTING COMPLETED page 105 (continued from previous slide) LESSON 4-3

PROVING CASH page 106 LESSON 4-3

MEMORANDUM FOR A CORRECTING ENTRY page 106 LESSON 4-3

JOURNAL ENTRY TO RECORD A CORRECTING ENTRY page 107 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. 2 Debit 1 Date 4 Source Document 3 Credit LESSON 4-3

TERMS REVIEW page 108 proving cash – determining that the amount of cash agrees with the accounting records correcting entry – a journal entry made to correct an error in the ledger LESSON 4-3