1. Posting from a General Journal to a General Ledger
Chapter 4

2. 4.1 Preparing a Chart if Accounts
A journal does not show in one place all of the changes in a single account
For this reason a separate form is used to summarize in one place all the changes to a single account
In the general ledger, up-to-date balances must be calculated after every entry.

4. Vocabulary Ledger is a group of accounts
General ledger is a ledger that contains all the accounts needed to prepare financial statements
Account number is the number assigned to an account
Chart of accounts is a list of account titles and numbers showing the location of each account in a ledger

5. Accounts
Accounts in the chart of accounts are listed in the same order as they appear in financial statements: 1)assets, 2)liabilities, 3)owner’s equity, 4)revenue, 5)expenses
First digit shows the general ledger division
Second two digits indicate the location within the division
This business assigns account numbers by 10s so new accounts can be easily added

8. Opening an Account Is a very simple process
Simply write the account name on the left and the account number on the right

10. aplia
4.1 working together
4.1 application

11. Posting
Transferring information from a journal entry to a ledger account is called posting
Numbers in the Post Ref columns serve three purposes:
An entry in an account can be traced to its source
An entry in a journal can be traced to where it was posted in the account
If posting is interrupted, one can easily see where they stopped

18. Aplia
4.2 working together
4.2 application

26. Proving Cash
Determining the amount of cash agrees with the balance of the cash account in the accounting records
This company proves cash at the end of the month

29. Correcting entry
This is what you call a journal entry made to correct an error in the ledger
If an accounting error is discovered, a memorandum is prepared describing the correction to be made

31. Aplia 4.3 Work Together 4.3 Application 4.4 Mastery
Chapter 4 Study Guide