Review for AC202

Ditcash 57 journalizethe transaction

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Unformatted text preview: 10,000 1 Cash 5,000 Common Stock (Invested cash in business) 5,000 Notes Payable (Issued 3-month, 12% note payable for cash) 2 Office Equipment 5,000 Cash 5,000 (Purchased office equipment for cash) 65 GENERAL JOURNAL Date Account Titles and Explanations Debit Credit 2004 Oct. 1 Cash 10,000 10,000 1 Cash 5,000 Common Stock (Invested cash in business) 5,000 Notes Payable (Issued 3-month, 12% note payable for cash) 2 Office Equipment 5,000 Cash 5,000 (Purchased office equipment for cash) 66 Basic Steps in the Recording Process. 1.Analyze 2.Journalize 3.Post 67 Recording Process Step 3 Transfer (post) the journal information to the appropriate accounts in the ledger 68 Posting Journal Entries to the Ledger Accounts Posting involves copying information from the journal to the ledger accounts. 69 Posting Journal Entries to the Ledger Accounts (T accounts) GENERAL JOURNAL Date Account Titles and Explanation P R Debit Credit 2001 May 1 Cash 8,000 Capital Stock 8,000 Owners invest cash in the business. General Ledger Date 2001 May 1 Cash Debit Credit 8,000 70 Posting Journal Entries to the Ledger Accounts GENERAL JOURNAL Date Account Titles and Explanation P R Debit Credit 2001 May 1 Cash 8,000 Capital Stock 8,000 Owners invest cash in the business. General Ledger Capital Stock Debit Credit 8,000 2001 5/1 71 GENERAL JOURNAL Account Titles and Explanations Date Debit Credit 2006 Jun. 1 Cash 2,500 Common Stock 2,500 (Issued stock to investors) 2 Equipment 900 Accounts Payable 900 (Bought equipment on account) 3 Rent Expense 500 Cash (Paid June Rent) 4 Accounts Receivable Service Revenue (Billed J. Kronsnoble for welding) 500 700 700 CAN YOU POST THESE TO YOUR LEDGER ACCOUNTS POSTING TO THE LEDGER Cash 6/1 2,500 73 POSTING TO THE LEDGER Common Stock 2,500 6/1 74 POSTING TO THE LEDGER Equipment 6/2 900 75 POSTING TO THE LEDGER Accounts Payable 900 6/2 76 POSTING TO THE LEDGER Rent Expense 6/3 500 77 POSTING TO THE LEDGER Cash 6/1 2,500 500 6/3 78 POSTING TO THE LEDGER Accounts Receivable 6/12 700 79 POSTING TO THE LEDGER Service Revenue 700 6/12 80 POSTING TO THE LEDGER Cash 6/1 Bal 2,500 2,000 Accounts Payable 500 900 6/3 6/2 Common Stock 2,500 6/1 Accounts Receivable 6/12 700 Service Revenue Equipment 6/2 700 6/12 900 6/3 Rent Expense 500 81 The General Ledger 6 •the entire group of accounts maintained by a company •contains all the asset, liability, and stockholders’ equity accounts 82 = + The General Ledger 83 Chart of Accounts... is a simple list of a company’s accounts. Every company has its own “individual” accounts according to the needs of the company. 84 Chart of Accounts for X Co. h), cas on n( e mo cid om de c ts. LIABILITY an areAccounts Payable coun s y c ac Salaries Payable me pan eir a e n com Interest Payable r th Unearned Revenue m ch So ea s fo Payable e Notes EQUITY STOCKHOLDER'S u t nam b Common Stock e Retained Earnings th REVENUE ASSETS Cash Accounts Receivable Supplies Land Equipment Service Revenue Interest Revenue EXPENSE...
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