1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4-1 Preparing a Chart of Accounts

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 4-1 RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM page 91 Balance columns

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 4-1 CHART OF ACCOUNTS page 92

4. CENTURY 21 ACCOUNTING © Thomson/South-Western Ledger – a group of accounts General ledger – ledger that contains all accounts needed to prepare financial statements. Account number – the number assigned to an account. 4 LESSON 4-1 CHART OF ACCOUNTS page 92

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 4-1 ACCOUNT NUMBERS page 92

6. CENTURY 21 ACCOUNTING © Thomson/South-Western File maintenance - assigning numbers and keeping records current. 510 Advertising Expense ? Gasoline Expense (new account) 520 Insurance Expense 550 Supplies Expense 560 Utilities Expense ? Water Expense (new account) 6 LESSON 4-1 ACCOUNT NUMBERS page 93

7. CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 4-1 1.Write the account title. 2.Write the account number. OPENING AN ACCOUNT IN A GENERAL LEDGER page 94 12

8. CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON 4-1 TERMS REVIEW ledger general ledger account number file maintenance opening an account page 95

9. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4-2 Posting Separate Amounts from a Journal to a General Ledger

10. CENTURY 21 ACCOUNTING © Thomson/South-Western 10 LESSON 4-2 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the debit amount. 5.Return to the journal and write the account number. POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN page 96 3 5 1 2 4

11. CENTURY 21 ACCOUNTING © Thomson/South-Western 11 LESSON 4-2 POSTING A SECOND AMOUNT TO AN ACCOUNT page 97 3 5 1 2 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the debit amount. 5.Return to the journal and write the account number.

12. CENTURY 21 ACCOUNTING © Thomson/South-Western 12 LESSON 4-2 POSTING AN AMOUNT FROM A GENERAL CREDIT COLUMN page 98 3 5 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the credit amount. 5.Return to the journal and write the account number. 2

13. CENTURY 21 ACCOUNTING © Thomson/South-Western 13 LESSON 4-2 TERM REVIEW posting page 99

14. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4-3 Posting Column Totals from a Journal to a General Ledger

15. CENTURY 21 ACCOUNTING © Thomson/South-Western 15 LESSON 4-3 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.

16. CENTURY 21 ACCOUNTING © Thomson/South-Western 16 LESSON 4-3 POSTING THE TOTAL OF THE SALES CREDIT COLUMN page 101 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number. 2 3 5

17. CENTURY 21 ACCOUNTING © Thomson/South-Western 17 LESSON 4-3 POSTING THE TOTAL OF THE CASH DEBIT COLUMN page 102 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number. 2 5 3

18. CENTURY 21 ACCOUNTING © Thomson/South-Western 18 LESSON 4-3 POSTING THE TOTAL OF THE CASH CREDIT COLUMN page 103 1 4 1.Write the date.4.Write the new account balance. 2.Write the journal page number. 3.Write the column total. 5.Return to the journal and write the account number. 2 5 3

19. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4-4 Completed Accounting Forms and Making Correcting Entries

20. CENTURY 21 ACCOUNTING © Thomson/South-Western 20 LESSON 4-4 JOURNAL PAGE WITH POSTING COMPLETED page 105

21. CENTURY 21 ACCOUNTING © Thomson/South-Western 21 LESSON 4-4 MEMORANDUM FOR A CORRECTING ENTRY page 108

22. CENTURY 21 ACCOUNTING © Thomson/South-Western 22 LESSON 4-4 JOURNAL ENTRY TO RECORD A CORRECTING ENTRY page 108 4 Source Document 3 Credit 1 Date 2 Debit 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.

23. CENTURY 21 ACCOUNTING © Thomson/South-Western 23 LESSON 4-4 TERM REVIEW correcting entry page 109