1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-4 Completed Accounting Forms and Making Correcting Entries 1.What is a correcting entry? 2.When is a correcting entry necessary? 3.When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry debited to the correct expense account? 4.When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry credited to the incorrect expense account?

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Service Business 2 LESSON 4-4 Objectives : 42 Post general entries to the general ledger. 50 Summarize the progression from source documents to journals.

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 4 Objectives Define accounting terms related to posting from a journal to a general ledger. Identify accounting concepts and practices related to posting from a journal to a general ledger. Prepare a chart of accounts for a service business organized as a proprietorship. Post separate amounts from a journal to a general ledger. Post column totals from a journal to a general ledger. Analyze and journalize correcting entries. 3 LESSON 4-4

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Correcting entry – A journal entry made to correct an error in the ledger. 4 LESSON 4-4

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 4-4 JOURNAL PAGE WITH POSTING COMPLETED page 105

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 4-4 MEMORANDUM FOR A CORRECTING ENTRY page 108

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 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.

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 4-4 TERM REVIEW correcting entry page 109 In your Chapter 4Terms Word Document and SaveAS Chapter4TermsYourName

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for Chapter 4-4 1.What is a correcting entry? 2.When is a correcting entry necessary? 3.When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry debited to the correct expense account? 4.When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry credited to the incorrect expense account? 9 LESSON 4-4 In a Word Document, SaveAS: Chapter4-4AYUYourName Drop a copy in my InBox today before you leave!

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 4-4 Assignments Complete on Aplia Work Together 4-4 On Your Own 4-4 Application Problem 4-4 10 LESSON 4-4