ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION page 97. Source documents are checked, and transactions are analyzed.. Transactions are recorded in journals. 5. Journal entries are posted to the accounts payable ledger, the accounts receivable ledger, and the general ledger.. Schedules of accounts payable and account receivable are prepared from the subsidiary ledgers. (continued on next slide) 5. A work sheet is prepared from the general ledger. LESSON -6
ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION page 97 8 9 6. Financial statements are prepared. 7. Adjusting and closing entries are journalized from the work sheet. 8. Adjusting and closing entries are posted to the general ledger. 9. A post-closing trial balance of the general ledger is prepared. 7 6 (continued from previous slide) LESSON -6
LESSON - Subsidiary ledger A ledger that is summarized in a single general ledger account Accounts Payable ledger Subsidiary ledger containing only accounts for vendors from whom merchandise or other items are purchased on account Accounts Receivable ledger Subsidiary ledger containing only accounts for charge customers Controlling account General ledger account that summarizes all accounts in a subsidiary ledger Accounts Payable and Accounts Receivable Balance of controlling account equals the total of all account balances in its related subsidiary ledger
ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT page 99 LESSON -
5 ACCOUNTS PAYABLE LEDGER FORMS page 00 5 6. Write the vendor name.. Write the vendor number.. Write the date.. Write the word Balance. 5. Place a check mark in the Post. Ref. column. 6. Write the balance. LESSON -
POSTING FROM A PURCHASES JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 0 6 5. Write the date.. Write the journal page number.. Write the credit amount.. Write the new account balance. 5. Write the vendor number. LESSON -
7 POSTING FROM A CASH PAYMENTS JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 0. Write the date.. Write the journal page number.. Write the debit amount.. Subtract the amount in the Debit column from the previous balance in the Credit column. Write the new balance. 5. Write the vendor number. 5 LESSON -
POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 0 8 5. Write the date.. Write the general journal page number.. Write the amount.. Add the amount in the Credit column to the previous balance in the Credit Balance column. Write the new balance. 5. Write the vendor number. LESSON -
POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 0 9 5. Write the date.. Write the general journal page number.. Write the amount.. Add the amount in the Debit column to the previous balance in the Debit Balance column. Write the new balance. 5. Write the vendor number. LESSON -
COMPLETED ACCOUNTS PAYABLE LEDGER page 0 0 LESSON -
PROVING THE ACCOUNTS PAYABLE LEDGER page 05 Schedule of Accounts Payable listing of vendor accounts, account balances, and total amount due all vendors Prepared after all entries in a journal are posted Total must match the balances of Accounts Payable in the general ledger LESSON -
TERMS REVIEW page 06 subsidiary ledger accounts payable ledger accounts receivable ledger controlling account schedule of accounts payable LESSON -
LESSON - Posting to an Accounts Receivable Ledger
ACCOUNTS RECEIVABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT page 07 LESSON -
ACCOUNTS RECEIVABLE LEDGER FORMS page 08 5 Customer name Customer number LESSON -
POSTING FROM A SALES JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER page 09 6 5. Write the date.. Add the amount in the Debit column to the. Write the sales journal previous balance in the Debit Balance page number. column. Write the new account balance.. Write the debit amount. 5. Write the customer number. LESSON -
POSTING FROM A CASH RECEIPTS JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER page 0 7. Write the date.. Write the cash receipts journal page number. 5. Write the credit amount.. Subtract the amount in the Credit column from the previous balance in the Debit Balance column. Write the new balance. 5. Write the customer number. LESSON -
POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER page 8 5. Write the date.. Write the general journal page number.. Write the amount.. Subtract the amount in the Credit column from the previous balance in the Debit Balance column. Write the new balance. 5. Write the customer number. LESSON -
COMPLETED ACCOUNTS RECEIVABLE LEDGER page 9 LESSON -
PROVING THE ACCOUNTS RECEIVABLE LEDGER 0 page Schedule of accounts receivable listing of customer accounts, account balances, and total amount due from all customers (total matches balance in Accounts Receivable) LESSON -
TERM REVIEW page schedule of accounts receivable LESSON -
LESSON - Posting from Journals to a General Ledger
STARTING A NEW PAGE FOR AN ACCOUNT IN A GENERAL LEDGER page 5 5 6. Write the account title.. Write the account number.. Write the date.. Write the word Balance in the Item column. 5. Place a check mark in the Post. Ref. column. 6. Write the balance. LESSON -
POSTING FROM THE GENERAL AMOUNT COLUMNS OF A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER page 6 5. Write the date.. Write the journal page number.. Write the debit amount.. Add the amount in the Debit column to the previous balance in the Balance Debit column. Write the new balance. 5. Write the general ledger account number. LESSON -
5 POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO A GENERAL LEDGER page 7. Write the date. 5. Write the general journal page number.. Write the amount.. Calculate and write the new account balance. 5. Write the general ledger account number. LESSON -
6 POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO A GENERAL LEDGER page 8. Write the date.. Write the general journal page number. 5. Write the amount.. Calculate and write the new account balance. 5. Write the general ledger account number. LESSON -
LESSON - Posting Special Journal Totals to a General Ledger
POSTING TOTALS OF A SALES JOURNAL TO A GENERAL LEDGER page 0 8 5 5 5. Write the date.. Write the sales journal page number.. For each column and account, write the column total.. For each account, calculate and write the new account balance. 5. In the sales journal, write the general ledger account number. LESSON -
POSTING THE TOTAL OF A PURCHASES JOURNAL TO A GENERAL LEDGER page 9 5 5. Write the date.. Write the purchases journal page number.. For each account, write the purchases journal column total.. For each account, calculate and write the new balance. 5. Write the purchases general ledger account number and the accounts payable general ledger account number. LESSON -
POSTING SPECIAL AMOUNT COLUMN TOTALS OF A CASH RECEIPTS JOURNAL TO A GENERAL LEDGER page 0. Date 5 5 5 5 5. Journal page number. Column total. Account balance 5. Account number LESSON -
POSTING SPECIAL AMOUNT COLUMN TOTALS OF A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER page 5 5 5. Date. Journal page number. Column total. Account balance 5. Account number LESSON -
ORDER OF POSTING FROM SPECIAL JOURNALS Items affecting customer or vendor accounts are posted periodically during the month Keeps subsidiary ledger balances up to date General ledger accounts are posted less often because they are only needed when financial statements are prepared Special amount columns are posted monthly in the following order:. Sales journal. Purchases journal. General journal. Cash receipts journal 5. Cash payments journal LESSON -
LESSON -5 Correcting Errors in Subsidiary Ledger Accounts December 0. Discovered that a sale on account to Cumberland Center on December was incorrectly charged to the account of Country Crafters, $.00. Memorandum No. 56. Accounts Rec. /.00 Country Crafters /.00 /0.00 /0.00 Cumberland Center Sales /.00
JOURNALIZING CORRECTING ENTRIES AFFECTING CUSTOMER ACCOUNTS page 7 December 0. Discovered that a sale on account to Cumberland Center on December was incorrectly charged to the account of Country Crafters, $.00. Memorandum No. 56. 5 6. Write the date. 5. Write the name of incorrectly. Write the name of correct customer. charged customer.. Write the memorandum number. 6. Write the amount.. Write the amount. LESSON -5
POSTING CORRECTING ENTRIES AFFECTING CUSTOMER ACCOUNTS page 8 5 5 5. Write the date.. Write the general journal page number.. Write the amount.. Calculate and write the new account balances. 5. Write the appropriate customer number in the Post. Ref. columns. LESSON -5