Chapter 4

Journalizing and Posting Transactions

 Learning Objectives

  1. LO1    Describe the flow of data from source documents through the trial balance.
  2. LO2    Describe and explain the purpose of source documents.
  3. LO3    Describe the chart of accounts as a means of classifying financial information.
  4. LO4    Journalize transactions.
  5. LO5    Post to the general ledger and prepare a trial balance.
  6. LO6    Explain how to find and correct errors.

LO5

The General Ledger–WATCH THIS VIDEO

  1. A complete set of all of the accounts used by a business.
  2. Provides a complete record of the transactions entered into each account.
  3. Accounts are numbered and arranged in the same order as the chart of accounts
  4. The journal and ledger are different books.
  5. Transactions should be entered in the journal as they occur. However, posting can wait until enough transactions have accumulated to use posting time efficiently. Of course, all transactions must be entered and posted prior to preparing financial statements.
  6. Double check your math as you go along. This can save hours of searching for an error later.
  7. A cross reference is the link between the journal and ledger as shown by information in the posting reference columns of the journal and the ledger. (See Figure 4-11 and Figure 4-12)
  8. STAPLE THE FOLLOWING TOGETHER & TURN THEM IN AT THE END OF CLASS:
    1. E4-3AWATCH THIS VIDEO TO HELP YOU–PRINT
    2. E4-3B–PRINT

The Trial Balance (See Figure 4-13)–WATCH THIS VIDEO

  1. Used to prove the totals of the debits and credits in the ledger accounts are equal.
  2. All transactions should be journalized and posted before the trial balance is prepared.
  3. The accounts are listed in the order used in the chart of accounts.
  4. STAPLE ALL OF THE FOLLOWING TOGETHER & TURN THEM IN AT THE END OF CLASS:
    1. E4-5A, E4-6A–GET THE WORKING PAPERS FROM YOUR TEACHER
    2. E4-5B, E4-6B–GET THE WORKING PAPERS FROM YOUR TEACHER
    3. E4-7A–USE EXCEL–PRINT
    4. E4-7B–USE EXCEL–PRINT