2.  Account names need to be entered ONLY if there is NOT a special column. ◦ Mini-Case  One line is sufficient for most transactions.  Exception - purchasing a computer system on account from Computers, Inc. requires two entry lines in the general columns.  If two special columns are used, such as debiting CASH and crediting REVENUE, a check mark is placed in the ACCOUNT column

3.  Record the given transactions within the journal. Use the current month and year. DateTransaction 1Purchased Office Furniture for $5,000. Issued Check 101. 5Rent Expense for month is $800. Issued Check 102. 8Sales Revenue equaled $4,500. 14Purchased Supplies for $250. Issued Check 103. 15Purchased Office Equipment for $2,500 on account from Computers, Inc. 20Telephone Expense for month is $75. Issued Check 104. 27Sales Revenue equaled $2,800. 28Paid Computers, Inc. $500 on account. Issued Check 105. 29Personal withdrawal of $750 by the owner. Issued Check 106. 30Electricity expense for month is $100. Issued Check 107.

4.  After recording the transactions in the journal, they need to be posted to the General Ledger.  Before posting the journal entries, ensure the Cash (debit), Supplies (debit), and, Capital (credit) ledger accounts have a Beginning Balance.  Post only the totals of the three special columns (Revenue, Cash debit, and Cash credit).  For the General column, each transaction must be posted individually.

5.  Facilitates the preparation of financial statements. ◦ Used to record the end-of-cycle account balance of each General Ledger account (Trial Balance). ◦ Used to identify adjusting entries and then distribute these account balances to the appropriate financial statement columns (Balance Sheet & Income Statement). ◦ Used to assign adjusted trial balances to the appropriate financial statement.  The first-step in preparing the worksheet is to record the General Ledger account balances in the Trial Balance columns (covered in next slide show). ◦ See the provided solutions