basics-of-accounting-information-processing

Receivable land accounts payable notes payable

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Unformatted text preview: the journal into their respective ledger accounts. In other words, the debits and credits in the journal will be accumulated (“transferred”/ “sorted”) into the appropriate debit and credit columns of each ledger page. Following is an illustration of the posting process. Notice that arrows are drawn to show how the first journal entry is posted. A similar process would occur for each of the other accounts. Please click the advert Are you remarkable? Win one of the six full tuition scholarships for International MBA or MSc in Management register now rode www.Nyen allenge.com MasterCh Download free eBooks at bookboon.com 38 Basics of Accounting & Information Processing The General Ledger In reviewing the ledger accounts at right, notice that the “description” column includes In reviewing the ledger accounts at right, a cross-reference back to the journal page in notice that the “description” column includes which the transaction was initially recorded. a cross-reference back to the journal page in This reduces the amount of detailed information which the transaction was initially recorded. that must be recorded in the ledger, and provides This reduces the amount of detailed information an audit trail back to the original transaction that must be recorded in the ledger, and provides in the journal. an audit trail back to the original transaction G journal. Page 1 in theENERAL JOURNAL Date Accounts 1-1-X3 Cash Debits ACCOUNT: Cash Date Jan. 4, 20X3 Advertising Expense Journal page 2 Jan. 28, 20X3 Credit Journal page 2 Jan. 25, 20X3 Journal page 2 Balance $ $ 25,000 25,000 $ 2,000 23,000 4,000 27,000 500 26,500 4,800 31,300 5,000 26,300 Credits ACCOUNT: Accounts Receivable 25,000 Date Description Jan. 1, 20X3 Jan. 25, 20X3 2,000 Journal page 2 Debit Journal page 2 Credit Balance forward Jan. 17, 20X3 2,000 Cash Cash Journal page 1 Jan. 18, 20X3 Paid advertising expense for initial advertising programs 1-8-X3 Journal page 1 Jan. 8, 20X3 Issued stock to shareholders, in exchange for cash 1-4-X3 Journal page 1 Debit Balance forward Jan. 1, 20X3 25,000 Capital Stock Description Jan. 1, 20X3 Balance $ $ 8,000 8,000 $ 4,800 3,200 ACCOUNT: Land Date 4,000 Description Jan. 1, 20X3 4,000 Provided services to customers for cash Journal page 2 Debit Credit Balance forward Jan. 28, 20X3 Service Revenue Balance $ $ 15,000 15,000 ACCOUNT: Accounts Payable Date GENERAL JOURNAL Date Accounts 1-15-X3 Utility Expense Debits 1-17-X3 Jan. 1, 20X3 Credits Jan. 15, 20X3 Journal page 2 Jan. 18, 20X3 Journal page 2 * Date 8,000 Service Revenue Accounts Payable 500 Debit Credit Balance $ $ 10,000 Debit 10,000 Journal page 1 Credit Balance forward Jan. 1, 20X3 Balance $ $ 25,000 25,000 ACCOUNT: Service Revenue Date 4,800 Description Debit Credit Balance Jan. 1, 20X3 Journal page 1 $ 4,000 4,000 Jan. 17, 20X3 5,000 Balance forward Jan. 8, 20X3 15,000 Notes Payable Description Jan. 1, 20X3 Received 60% of the amount due on the receivable that was established on Januar...
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This document was uploaded on 09/24/2013.

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