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Posting from a General Journal to a General Ledger
Chapter 4 Posting from a General Journal to a General Ledger
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Terms that you should be familiar with for this chapter
Ledger- Is a group of accounts General Ledger A ledger that contains all accounts needed to prepare financial statements Account Number Each account has its own number that corresponds with where it is located in a chart of accounts
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Company Name Chart of Accounts
Balance Sheet Accounts 100 (Assets) 110 Cash 120 Petty Cash 200 (Liabilities) 210 Butler Cleaning Supp. 300 (Owners Equity) 310 B.F. Capital 320 B.F. Drawing Income Statement Accts 400 (Revenue) 410 Sales 500 (Expenses) 510 Advertising Expense 520 Rent Expense 530 Utilities Expense
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How are the accounts put into the chart of accounts
Assets By order of Liquidity Liabilities Alphabetical order Owner’s Equity Alpha Order Revenue Alpha order Expenses
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Opening a Account Account Account NO Date Item Post Ref Debit Credit
Account NO Date Item Post Ref Debit Credit Balance 110 Cash
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Please work on “Work together” and “On your own” on page 100
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Posting from General Journal to General Ledger
Section 2
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Posting Simply taking the information from the General Journal and placing it into a account where we can keep track of just its balance.
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GENERAL JOURNAL PAGE DOC. POST. GENERAL DATE ACCOUNT TITLE NO. REF.
GENERAL JOURNAL PAGE 1 2 DOC. POST. GENERAL DATE ACCOUNT TITLE NO. REF. DEBIT CREDIT 3 4 5 6 7 8 9 ACCOUNT ACCOUNT NO. POST. BALANCE DATE ITEM REF. DEBIT CREDIT ACCOUNT ACCOUNT NO. POST. BALANCE DATE ITEM REF. DEBIT CREDIT ACCOUNT ACCOUNT NO. POST. BALANCE DATE ITEM REF. DEBIT CREDIT
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110 Aug 1 G1 10000 10000 General Journal Page 1 Date Account Title
Doc No Post Ref Debit Credit Aug 1 Cash R1 10000 Barbara Trevino, Cap 110 Account Cash Account NO 110 Date Item Post Ref Debit Credit Balance Aug G1 10000 10000
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310 110 Aug 1 G1 10000 10000 Aug 1 General Journal Page 1 Date
Account Title Doc No Post Ref Debit Credit Aug 1 Cash R1 10000 Barbara Trevino, Cap 310 110 Account Cash Account NO 110 Date Item Post Ref Debit Credit Balance Aug G1 10000 10000 Account Barbara Trevino, Cap Account NO 310 Date Item Post Ref Debit Credit Balance G1 10000 Aug
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Lets do another just so we understand…..
130 September 22, Paid cash for supplies, $200 R1 110 Sept 22 G1 200 200 Sept 22 G1 200 200
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What happens when something gets added or subtracted from the account
Notice what type of account this is. When things are debited, they are added. When things are credited, they are subtracted. Account Cash Account NO 110 Date Item Post Ref Debit Credit Balance Aug 1 10000 3 5000 15000 5 8000 7000
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Please lets work together on page 105
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110 310 130 210 140 110 General Ledger Accounts
General Journal Date Account Title Doc. No Post Ref Debit Credit Sept 1 Cash R1 2500 Melanie Komoko, Cap 4 Supplies M1 67 Accounts Payable- Signs Plus 7 Prepaid Insurance C1 330 10 Accounts Rec. - Brenden Otto S1 195 Sales 13 T13 1100 18 Utilities Expense C2 49 21 Accts Pay. - Signs Plus C3 35 27 R2 100 Accts Rec. - Brenden Otto 30 C4 300 110 310 130 210 140 110 General Ledger Accounts Acct: Cash Acct No. 110 Date Doc. No. Balance Acct Title Debit Credit Sept 1 G1 2500 General Ledger Accounts Acct. Accounts Payable - Signs Plus Acct No. 210 Date Doc. No. Balance Acct Title Debit Credit Sept 4 G1 67 General Ledger Accounts Acct. Melanie Komoko, Captial Acct No. 310 Date Doc. No. Balance Acct Title Debit Credit Sept 1 G1 2500 General Ledger Accounts Acct. Prepaid Insurance Acct No. 140 Date Doc. No. Balance Acct Title Debit Credit Sept 7 G1 330 General Ledger Accounts Acct.Cash Acct No. 110 Date Doc. No. Balance Acct Title Debit Credit Sept 1 G1 2500 7 330 2170 General Ledger Accounts Acct. Supplies Acct No. 130 Date Doc. No. Balance Acct Title Debit Credit Sept 4 G1 67 67
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Correcting Entry Proving Cash
When we make a mistake on an entry we have to change the accounts to change it to the correct entry Proving Cash Simple does the amount in our cash account equal what it says in our checkbook?
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Problems 5-1,2,3,4,5 We will do the computer problem next time in class. 5-1
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