Illustration 2 17 Posting a journal entry Ledger LO 3 2 24 Chart of Accounts

Illustration 2 17 posting a journal entry ledger lo 3

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Illustration 2-17 Posting a journal entry Ledger LO 3
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2-24 Chart of Accounts Illustration 2- 18 LO 3
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2-25 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 2- 19 The Recording Process Illustrated LO 3
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2-26 LO 3 Illustration 2-20 Purchase of office equipment
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2-27 Illustration 2- 21 Receipt of cash for future service LO 3
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2-28 Illustration 2-22 Payment of monthly rent LO 3
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2-29 Illustration 2- 23 Payment for insurance LO 3
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2-30 Illustration 2-24 Purchase of supplies on credit LO 3
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2-31 The Recording Process Illustrated Illustration 2-25 Hiring of employees LO 3
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2-32 Illustration 2-26 Withdrawal of cash by owner LO 3
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2-33 Illustration 2-27 Payment of salaries LO 3
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2-34 Illustration 2-28 Receipt of cash for services performed LO 3
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2-35 Summary Journalizing and Posting Illustration 2- 29 LO 3
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2-36 Illustration 2- 29 LO 3
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2-37 LO 3 Illustration 2- 30
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2-38 LEARNING OBJECTIVE Prepare a trial balance. 4 Illustration 2- 31 LO 4
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2-39 Trial balance may balance even when: 1. A transaction is not journalized. 2. A correct journal entry is not posted. 3. A journal entry is posted twice. 4. Incorrect accounts are used in journalizing or posting. Trial Balance Limitations of a Trial Balance LO 4
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2-40 Dollar Signs u Do not appear in journals or ledgers. u Typically used only in the trial balance and the financial statements. u Shown only for the first item in the column and for the total of that column. Underlining u A single line is placed under the column of figures to be added or subtracted. u Totals are double-underlined. Dollar Signs and Underlining LO 4
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2-41 A trial balance will not balance if: a. a correct journal entry is posted twice. b. the purchase of supplies on account is debited to Supplies and credited to Cash. c. a $100 cash drawing by the owner is debited to Owner’s Drawing for $1,000 and credited to Cash for $100. d. a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45. Trial Balance Question LO 4
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2-42 4 Trial Balance LO 4
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  • Fall '19
  • Double-entry bookkeeping system, The Journal, s Capital

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