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Journal the journal journalizing entering transaction

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Unformatted text preview: d how it helps in the recording process. Journalizing Journalizing Oct. 1 Sierra issued common stock in exchange for $10,000 cash. General Journal Date Oct. 1 3-36 Account Title Cash Common stock Ref. Debit Credit 10,000 10,000 SO 5 Explain what a journal is and how it helps in the recording process. Journalizing Journalizing Oct. 1 Sierra borrowed $5,000 by signing a note. General Journal Date Oct. 1 3-37 Account Title Cash Notes payable Ref. Debit Credit 5,000 5,000 SO 5 Explain what a journal is and how it helps in the recording process. Journalizing Journalizing Oct. 2 Sierra purchased equipment for $5,000. General Journal Date Oct. 2 3-38 Account Title Equipment Cash Ref. Debit Credit 5,000 5,000 SO 5 Explain what a journal is and how it helps in the recording process. 3-39 Steps in the Recording Process Steps in the Recording Process The Ledger contains the entire group of accounts maintained by a company. Illustration 3-19 3-40 SO 6 Explain what a ledger is and how it helps in the recording process. SO Steps in the Recording Process Steps in the Recording Process Chart of Accounts – listing of accounts used by a company to record transactions. 3-41 SO 6 Explain what a ledger is and how it helps in the recording process. Steps in the Recording Process Steps in the Recording Process Posting – the process of transferring amounts from the journal to the ledger accounts. General Journal Date Oct. 1 Account Title J1 Ref. Debit 101 10,000 Cash Common stock Credit 10,000 General Ledger Cash Date Oct. 1 3-42 Acct. No. 101 Explanation Ref. Debit Owner investment J1 10,000 Credit Balance 10,000 SO 7 Steps in the Recording Process Steps in the Recording Process Review Question Posting: a. normally occurs before journalizing. b. transfers ledger transaction data to the journal. c. is an optional step in the recording process. d. transfers journal entries to ledger accounts. 3-43 SO 7 Explain what posting is and how it helps in the recording process. The Recording Process Illustrated The Recording Process Illustrated Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into debits and credits. Illustration 3-21 3-44 SO 7 Explain what posting is and how it helps in the recording process. The Recording Process Illustrated The Recording Process Illustrated Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into debits and credits. Illustration 3-22 3-45 SO 7 Explain what posting is and how it helps in the recording process. The Recording Process Illustrated The Recording Process Illustrated Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into debits and credits. Illustration 3-23 3-46 SO 7 Explai...
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This note was uploaded on 09/27/2013 for the course MGT 11A taught by Professor Armstrong during the Fall '08 term at UC Davis.

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