1. Chapter 5 Posting from a General Journal to a General Ledger

2. 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

3. 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

4. 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 –Alpha Order

5. Opening a Account Account Account NO DateItemPost RefDebitCredit Balance DebitCredit Cash 110

6.  Please work on “Work together” and “On your own” on page 100

7. Posting from General Journal to General Ledger Section 2

8.  Posting –Simply taking the information from the General Journal and placing it into a account where we can keep track of just its balance.

9. General JournalPage 1 Date Account TitleDoc NoPost RefDebitCredit Aug1CashR1 10000 Barbara Trevino, Cap 10000 AccountCash Account NO110 DateItemPost RefDebitCredit Balance DebitCredit Aug 1G1 10000 110

11. General JournalPage 1 Date Account TitleDoc NoPost RefDebitCredit Aug1CashR1 10000 Barbara Trevino, Cap 310 10000 AccountCash Account NO110 DateItemPost RefDebitCredit Balance DebitCredit Aug 1G1 10000 110 Account Barbara Trevino, Cap Account NO310 DateItemPost RefDebitCredit Balance DebitCredit G1 10000 Aug 1

12. What happens when something gets added or subtracted from the account AccountCash Account NO110 DateItemPost RefDebitCredit Balance DebitCredit Aug1 10000 3 5000 15000 5 80007000 Notice what type of account this is. When things are debited, they are added. When things are credited, they are subtracted.

13.  Please lets work together on page 105

14. General Journal DateAccount TitleDoc. NoPost RefDebitCredit Sept1CashR1 2500 Melanie Komoko, Cap 2500 4SuppliesM1 67 Accounts Payable- Signs Plus 67 7Prepaid InsuranceC1 330 Cash 330 10 Accounts Rec. - Brenden OttoS1 195 Sales 195 13CashT13 1100 Sales 1100 18Utilities ExpenseC2 49 Cash 49 21Accts Pay. - Signs PlusC3 35 Cash 35 27CashR2 100 Accts Rec. - Brenden Otto 100 30Melanie Komoko, CapC4 300 Cash 300 General Ledger Accounts Acct: Cash Acct No. 110 Date Doc. No. Balance Acct TitleDebitCreditDebitCredit Sept1 G12500 110 General Ledger Accounts Acct. Melanie Komoko, Captial Acct No. 310 Date Doc. No. Balance Acct TitleDebitCreditDebitCredit Sept1 G1 2500 310 General Ledger Accounts Acct. Supplies Acct No. 130 Date Doc. No. Balance Acct TitleDebitCreditDebitCredit Sept4 G1 67 130 General Ledger Accounts Acct. Accounts Payable - Signs Plus Acct No. 210 Date Doc. No. Balance Acct TitleDebitCreditDebitCredit Sept4 G1 67 210 General Ledger Accounts Acct. Prepaid Insurance Acct No. 140 Date Doc. No. Balance Acct TitleDebitCreditDebitCredit Sept7 G1330 140 General Ledger Accounts Acct.Cash Acct No. 110 Date Doc. No. Balance Acct TitleDebitCreditDebitCredit Sept1 G12500 7 G1 3302170 110

15.  Correcting Entry –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?

16.  Problems –5-1,2,3,4,5 –We will do the computer problem next time in class. 5-1