Accounting                                                                   Name ____________________

 

Ch. 5                                                                             Date _____________________

 

Posting from a General Journal to a General Ledger

 

5-1    Preparing a ____________________ of Accounts

 

A.      Relationship of a T Account to an Account ___________

          1.      Information on an _____________ _____________ is used to trace

 transactions back to the General Journal:

          a.       Account forms are based on _________ and _________sides.

b.       Space is also provided for the transaction _________ and journal page _________________.

          2.      Some account form designs do _______ give an area for an up-to-date

                   balance to be kept, therefore it must be calculated ___________ time the

                   account is examined.

          3.      Balance-Ruled Account Form

a.       The Account ___________ we will be using.

b.       This Form has __________ for DR & CR balances.

                   c.       Account balance is _____________ and _____________ as each

entry is recorded.

 

B.      Chart of Accounts

          1.      _____________- A group of accounts.

2.      General Ledger - A ledger that contains ______ ___________ needed to

prepare financial statements.

          3.      Account _________ - The ____________ given to each account.

          4.      Account ______________ - The number assigned to an account.

          5.      Chart of Accounts - A _____________ of account titles and numbers

showing the location of each account in a ledger.

          6.      Accounts in a general ledger are arranged in the _________ _________

                   as they appear on financial statements.

          7.      Encore Music's Chart of Account has _____ Divisions

                   a.       Assets                  b.       Liabilities            c.       Revenue

                   d.       Expenses              e.       Owner's Equity

 

                   Encore Music Chart of Accounts

Balance Sheet Accounts

Income Statement Accts.

(100) Assets

110   Cash

120   Petty Cash

130   A/R - Kids Time

140   A/R - Learn N Play

150   Supplies

160   Prepaid Insurance

 

(200) Liabilities

210   A/P - Ling Music Supplies

220   A/P - Sullivan Office Supplies

 

(300) Owner's Equity

310   Barb Trevino, Capital

320   Barb Trevino, Drawing

330   Income Summary

(400) Revenue

410 Sales

 

(500) Expenses

510   Advertising Expense

520   Insurance Expense

530   Miscellaneous Expense

540   Rent Expense

550   Supplies Expense

560   Utilities Expense

 

C.      Account Numbers

          1.      ___________ Maintenance - The ______________ for arranging

accounts in a general ledger, assigning account numbers, and keeping

records ____________.

a.       Encore Music assigns ________-digit account numbers to

each account.

 

Example:  Supplies 150

 

b.       The ______ digit of each account number shows the general ledger ______________ where the account is located.

 

Example:  Asset Accounts are all 100's, Supplies begins with 1.

 

                   c.       The ____________ digits indicate the _____________ of each

account within a general ledger division.

 

Example:  The 50 under the account number for Supplies (150) indicates that the account is located between account number 140 & 160.

 

                   d.       Encore Music initially assigns account numbers by 10's so new

accounts can be _______________ easily.    

                   e.       Nine numbers are ______________ between each account.

 

Example:  Numbers 111 to 119 are unused between 110 and 120.  This enables new numbers to be assigned between existing account numbers without renumbering all existing accounts.

 

f.       Encore Music arranges accounts in _____________order.  When inserting new accounts they should be inserted alphabetically.

 

Example:   510   Advertising Expense (existing acct.)                

__________  Expense (New Account)

520   Insurance Expense (existing acct.)

 

g.       The number selected for new accounts should leave some _______ numbers on each side of it for other accounts that might need to be added.

 

Example:   501   Advertising Expense (existing acct.)

515   Gasoline Expense (New Account)

520   Insurance Expense (existing acct.)

         

h.       When an account is no longer needed, it is ___________ from the General Ledger and Chart of Accounts.

 

Example:  If we____________ a building and ______________ renting we would no longer need our rent expense account (540).  540 would be removed, and that number would become ญญญญญญญญญ_______________ and available to assign to another account if need should arise.

 

                   i.       When a new account is added at the end of a ledger division, the _______ number in a sequence of 10's is used.

 

Example:  550   Supplies Expense  (existing acct.)

560   Utilities Expense  (existing acct.)

570   ญญ_________ Expense (New Account)

 

                    j.       Why Encore Music only uses ___ digit acct. numbers

                   1)      We have relatively few accounts in our General Ledger.

                             2)      We do not anticipate adding many new accounts in the future.

3)      3-digit numbers adequately provide for the few account numbers needed.

                             4)      As the number of general ledger accounts _________, a business may change to four or more digits.

D.      Opening an Account In a General Ledger

1.      Opening An Account - Writing an account ________ and number on the heading of an account.

          2.      A General Ledger account is opened for each account listed on the Chart of Accounts.

          3.      ญญญญ______ ______ is the first account on Encore Music's Chart of Accounts.

          4.      Opening an account in a general ledger:

a.       Write the ___________ after the word _________t in the heading.

b.       Write the ___________ after the words ________ No. in the heading.

 

5-2 Posting from a ________________to a General Ledger

 

A.      Posting from the General Journal

1.      _________ - Transferring information from a journal entry to a ledger account.

          2.      Posting _______ journal entries so that all debits and credits affecting each account are brought together in one place.

          3.      Post Reference Number Column

                   a.       Use the Account Number (Cash = 110)

                   b.       Post Reference Numbers allow you to be able to ________ an entry in an account to its source in a journal or to where it was ________ in an account.

                   c.       If posting is interrupted, the accounting personnel can easily see which entries in the general journal still need to be posted.

                   d.       Blanks in the Post. Ref. Column indicates that posting for that line still needs to be _____________.

                   e.       The posting reference is always recorded in the journal as the _______ step in the posting procedure.

 

Steps to Posting an Amount from a

_______ __________of a General Journal

 

1.      Write the date, August 1, 1999, in the Date column of the account,______..

 

2.      Write the journal page number, _______1, in the Post. Ref. column of the account. The letter G is an abbreviation for the General Journal.  The number 1 stands for page one of the General Journal.  Post. Ref. is an abbreviation for Posting Reference.

 

3.      Write the Debit amount, $10,000.00, in the Debit amount column of the

account.

 

4.      Write the new account balance, $10,000.00, in the Balance Debit column. 

Because this entry is the ______ in the Cash account, the previous balance is zero.  If there was a previous balance you would add it to your transaction to obtain the proper balance.

 

5.      (______ Step) Return to the journal and write the account number, 110, in the Post. Ref. Column of the General Journal.

 

 

Steps to Posting an Amount from a _______ __________of a General Journal

 

1.      Write the date, August 1, 1999, in the Date column of the account, _________

__________, Capital.

 

2.      Write the journal page number, G1, in the Post. Ref. Column of the account.

 

3.      Write the ________ amount, $10,000.00, in the Credit amount column of the account.

 

4.      Write the new account balance, $10,000.00, in the Balance Credit column. Because this entry is the first in the __________ account, the previous balance is 0.

 

5.      (Last Step) Return to the journal and write the account number, 310, in the

___________ __________ Column of the Journal.

 

B.      Posting a Debit Amount to an Account with a Balance

          1.      Steps to _________ a Debit Amount to an Account with a Debit Balance.

a.       Write the date, 7, in the Date column of the account.  The month and the year are written only once on a page of a ledger account unless the month or year ญญญญญ____________.

                   b.       Write the journal page number, ____, in the Posting Reference Column of the account.

          c.       Write the Debit amount, $22,720.00, in the Debit Amount Column of the account.

                   d.       Write the new balance, $4,297.00, in the Balance Debit Column.  When both the _________balance and a newly posted amount are Debits, the new balance is a Debit.

 

Previous                       DR Column                  New DR

Balance     +                Amount                =       Balance

                             $1,577.00  +                 $2,720.00  =       $4,297.00                             

                   e.       Return to the journal and write the account number, 150, in the Post. Ref. Column of the journal.

          2.      Steps to Posting a ________Amount to an Account with a Credit Balance.

a.       Write the date, 11, in the Date Column of the account.

b.       Write the _________ page number, G1, in the Post. Ref. Column of the account.

          c.       Write the debit amount, $1,360.00, in the Debit Amount Column of the account.

                   d.       Write the new balance, $1,360.00, in the Balance Credit Column. 

1)      Whenever the credits in an account __________ the debits, the balance is a credit. 

2)      Whenever the debits in the account __________ the credits, the balance is a debit.

 

Previous                       DR Column                  New CR

Balance     -                  Amount                =       Balance

                             $2,720.00  -                  $1,360.00  =       $1,360.00                             

                   e.       _________ to the journal and write the account number, 210, in the Post. Ref. column of the journal.