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Chapter 5

Chapter 5. Posting from a General Journal to a General Ledger. Terms that you should be familiar with for this chapter. Ledger- Is a group of accounts General Ledger A ledger that contains all accounts needed to prepare financial statements Account Number

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Chapter 5

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  1. Chapter 5 Posting from a General Journal to a General Ledger

  2. Terms that you should be familiar with for this chapter • Ledger- • Is a group of accounts • General Ledger • A ledger that contains all accounts needed to prepare financial statements • Account Number • Each account has its own number that corresponds with where it is located in a chart of accounts

  3. Balance Sheet Accounts 100 (Assets) 110 Cash 120 Petty Cash 200 (Liabilities) 210 Butler Cleaning Supp. 300 (Owners Equity) 310 B.F. Capital 320 B.F. Drawing Income Statement Accts 400 (Revenue) 410 Sales 500 (Expenses) 510 Advertising Expense 520 Rent Expense 530 Utilities Expense Company NameChart of Accounts

  4. How are the accounts put into the chart of accounts • Assets • By order of Liquidity • Liabilities • Alphabetical order • Owner’s Equity • Alpha Order • Revenue • Alpha order • Expenses • Alpha Order

  5. Opening a Account 110 Cash

  6. Please work on “Work together” and “On your own” on page 100

  7. Posting from General Journal to General Ledger Section 2

  8. Posting • Simply taking the information from the General Journal and placing it into a account where we can keep track of just its balance.

  9. 110 Aug 1 G1 10000 10000

  10. 110 Aug 1 G1 10000 10000 Aug 1

  11. What happens when something gets added or subtracted from the account Notice what type of account this is. When things are debited, they are added. When things are credited, they are subtracted.

  12. Please lets work together on page 105

  13. 110 310 130 210 140 110

  14. Correcting Entry • When we make a mistake on an entry we have to change the accounts to change it to the correct entry • Proving Cash • Simple does the amount in our cash account equal what it says in our checkbook?

  15. Problems • 5-1,2,3,4,5 • We will do the computer problem next time in class. 5-1

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