Lesson 1-4 Preparing a Chart of Accounts 9/11/2018 LESSON 4-1 Preparing a Chart of Accounts

CHART OF ACCOUNTS page 92 LESSON 4-1

Chart of Accounts A group of accounts is called a ledger. Lesson 4-1 Chart of Accounts A group of accounts is called a ledger. A ledger that contains all accounts needed to prepare financial statements is called a general ledger. The name given to an account is known as an account title. The number assigned to an account is called an account number.

ACCOUNT NUMBERS page 92 LESSON 4-1

Assigning Account Numbers Lesson 4-1 Assigning Account Numbers 560 Miscellaneous Expense (Existing account) 570 Supplies Expense (Existing account) 570 Supplies Expense (Existing account) 565 Postage Expense (New Account) 580 Water Expense (New Account)

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

Assigning Account Numbers Lesson 4-1 Assigning Account Numbers The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current is called file maintenance.

Opening an Account in a General Ledger Lesson 4-1 Opening an Account in a General Ledger Writing an account title and number on the heading of an account is called opening an account.

OPENING AN ACCOUNT IN A GENERAL LEDGER page 94 1 2 1. Write the account title. 2. Write the account number. LESSON 4-1

Lesson 4-2 Posting Separate Amounts from a Journal to a General Ledger 9/11/2018 LESSON 4-2 Posting Separate Amounts from a Journal to a General Ledger

Posting an Amount from a General Debit Column Lesson 4-2 Posting an Amount from a General Debit Column Transferring information from a journal entry to a ledger account is called posting.

POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN 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 A SECOND AMOUNT TO AN ACCOUNT page 97 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 A GENERAL CREDIT COLUMN page 98 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

Lesson 4-3 Posting Column Totals from a Journal to a General Ledger 9/11/2018 LESSON 4-3 Posting Column Totals from a Journal to a General Ledger

CHECK MARKS SHOW THAT AMOUNTS ARE NOT POSTED page 100 Check mark indicates that amounts ARE NOT posted individually. Check mark indicates that general amount column totals ARE NOT posted. LESSON 4-3

POSTING THE TOTAL OF THE SALES CREDIT COLUMN page 101 2 3 1 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 column total. LESSON 4-3

POSTING THE TOTAL OF THE CASH DEBIT COLUMN page 102 2 3 1 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 column total. LESSON 4-3

POSTING THE TOTAL OF THE CASH CREDIT COLUMN page 103 3 2 1 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 column total. LESSON 4-3

Completed Accounting Forms and Making Correcting Entries LESSON 4-4 Completed Accounting Forms and Making Correcting Entries

JOURNAL PAGE WITH POSTING COMPLETED LESSON 4-4

MEMORANDUM FOR A CORRECTING ENTRY page 108 An incorrect journal entry should be corrected with an additional journal entry, called a correcting entry. A memorandum is prepared as the source document describing the correction to be made. LESSON 4-4

JOURNAL ENTRY TO RECORD A CORRECTING ENTRY page 108 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. 1 Date 2 Debit 4 Source Document 3 Credit LESSON 4-4