Review for AC202

1 cash 2500 common stock 2500 issued stock to

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Unformatted text preview: Salaries Expense Utility Expense 85 The General Ledger 86 The Ledger The entries from the journal are posted to the ledger usually in summary form 87 Posting Transferring information from the journals to the general ledger accounts is called “posting” 88 Posting Entries (running ledger) GENERAL JOURNAL Account Titles and Explanations 2007 Oct. 1 Cash 10,000 Common Stock 10,000 Account CASH Date ref debit Account COMMON STOCK Dat e ref debit credit Acct 1010 Balance debit credit credit Acct 3010 Balance debit credit Posting Entries GENERAL JOURNAL Account Titles and Explanations 2007 Oct. 1 Cash 10,000 Common Stock 10,000 Account CASH Date Oct 1 ref gj 1 debit credit 10,000 Account COMMON STOCK Dat e ref debit Oct 1 gj 1 Acct 1010 Balance debit credit 10,000 Acct 3010 Balance credit debit credit 10,000 10,000 Posting Entries GENERAL JOURNAL Account Titles and Explanations 2007 r mo t for lass 10,000 Common Stock n cou this c 10,000 T-Ac rm in e Acct 1010 Account CASH e th unt fo us n o Date Balance u ca ing acc Yo debit credit debit credit runnref e th gj 1 Oct 1 10,000 10,000 Oct. 1 Cash Account COMMON STOCK Dat e ref debit Oct 1 gj 1 Acct 3010 Balance credit debit credit 10,000 10,000 Trial Balance A list of all the accounts and their balances (either debit or credit) at a given time. It serves to prove the mathematical equality of debits and credits after posting. It aids in the preparation of financial statements. 92 Sierra Corporation Trial Balance October 31, 2007 Cash Advertising Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Unearned Service Revenue Common Stock Dividends Service Revenue Salaries Expense Rent Expense Debit Credit $15,200 2,500 600 5,000 $ 5,000 2,500 1,200 10,000 500 10,000 4,000 900 $28,700 $28,700 Sierra Corporation Trial Balance October 31, 2004 Debit Credit Cash $15,200 Advertising Supplies 2,500 Prepaid Insurance 600 Office Equipment 5,000 To Notes Payable do a trial balance, just copy $ 5,000 Accounts Payable the ledger accounts, in 2,500 all of Unearned Service Revenue 1,200 order, that have a balance. Then Common Stock 10,000 Dividends put the balance in the correct 500 Service Revenue 10,000 column (debit or credit balance) Salaries Expense 4,000 Rent Expense 900 $28,700 $28,700 94 Sierra Corporation Trial Balance October 31, 2004 Debit Credit Cash $15,200 Advertising Supplies 2,500 Prepaid Insurance 600 Office Equipment 5,000 Notes Payable $ 5,000 CAN Accounts Payable YOU DO ONE FOR THE 2,500 Unearned Service Revenue 1,200 LEDGER ACCOUNTS YOU Common Stock 10,000 Dividends 500 JUST POSTED? Service Revenue 10,000 Salaries Expense 4,000 Rent Expense 900 $28,700 $28,700 95 Something Corporation Trial Balance June 30, 2006 Cash Accounts Receivable Equipment Accounts Payable Common Stock Service Revenue Rent Expense Debit Credit $ 2,000 700 900 900 2,500 700 500 $ 4,100 $ 4,100 Note that even a “trial balance” needs to be titled and dated. 96 Double Entry Accounting 1. 2. 3. 4. 5. 6. Economic transaction Analyze the transaction (what accounts, are the increased or decreased) Journalize the transaction Post the journal entry to the ledger (T) accounts Foot the ledger accounts (fi...
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