1. Unit Journalizing

2. The Accounting Cycle Journalize Entries in the General Journal
Analyze Transactions and Source Documents
Post the General Journal to the General Ledger
Post Closing Entries to the Trial Balance
Prepare Adjusting Entries, Vouchers, and the Trial Balance
Analyze and Review the Financial Statements
Prepare Financial Statements
Prepare Closing Entries

3. Step 2: Journalizing Entries into the General Journal
The general journal is:
A day-to-day record of business transactions
Sometimes referred to as the book of original entry
Each journal entry includes:
The date of the transaction
The account(s) affected by the transaction
A brief description of the transaction
The debit or credit amount

4. Step 3: Posting the General Journal to the General Ledger
Is a complete record of all financial transactions
Includes multiple subsidiary ledgers
Sometimes referred to as the book of final entry
Is the source of data for company financial statements

5. Step 4: Preparing Adjusting Entries, Vouchers, and the Trial Balance
Lists all the debit and credit balances for an accounting period
Includes every general ledger account
Helps you to find errors in the general ledger
Adjusting and correcting journal entries:
Are recorded at the end of an accounting period to adjust general ledger accounts
Are used to correct errors and/or match revenues and expenses

6. Computerized Accounting Systems
Have practically eliminated the use of physical book ledgers
Popular accounting software packages include:
QuickBooks
Peachtree/Sage
Quicken
ERPs
Excel

7. Journalizing in the General Journal
For Day-to-Day Business Transactions
Five Basic Steps:
Record the date.
Record the relevant chart of accounts number.
Record the description of the chart of accounts number.
Record the debit or credit.
Record the description of the business transaction that took place.

8. Journalizing in the General Journal
For Day-to-Day Business Transactions

9. Posting to the General Ledger
A Complete Record of Financial Transactions
Summarized General Ledger Balances

10. Posting to the General Ledger
A Complete Record of Financial Transactions
Subsidiary Ledgers

11. Correcting Entries When you find an error in the general ledger:
Use a journal voucher template.
Select a journal entry number.
Input information into the voucher.
Include supporting documents.

12. Voucher For a Correcting Journal Entry

13. Depreciation = Depreciation Expense Asset Value – Salvage Value
Useful Life of the Asset (in years) =

14. Voucher For a Depreciation Expense

15. Preparing the Trial Balance
When analyzing and reviewing the trial balance, make sure that you:
Check the balance.
Look for duplicate entries.
Investigate transposed numbers.
Review source documents.

16. Example—Debits and Credits Equal
Trial Balance
Example—Debits and Credits Equal

17. Inventory
Two Systems:
Perpetual system
Periodic system

18. Computerized Accounting Systems
Xxxxxxxx
Quicken
Quickbooks
Peachtree / Sage 50
Microsoft Excel