ACC-1A Lecture Notes - Lecture 22: General Ledger, The Ledger, Trial Balance

14 views2 pages

lemonwasp425

8 Sep 2020

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Accounting transactions are first recorded in a journal. Once recorded, the information is transferred or posted to a ledger. Information in the ledger is then summarised in a worksheet known as a trial balance. Financial statements are then prepared from the information in the trial balance. A journal is a chronological record of transactions. At the far left of the journal is a column for the transaction date. To the right of the date is a column to record the names of the accounts affected by the transaction and an explanation. The account(s) receiving debit entries are listed first, followed by the account(s) receiving credit entries, which are slightly indented. To the right of the account names are debit and credit columns to record the monetary amounts of the transaction. A ledger is a collection of accounts and their balances.

Related Questions

On a trial balance, if the debit and credit column totals are equal, then:

a. All transactions have been recorded correctly.

b. All entries from the journal have been posted to the ledger correctly.

c. All ledger account balances are correct.

d. The total debit entries and total credit entries are equal.

e. The balance sheet would be correct

chocolateserval968

Record (journalize) transactions in the books) Doherty Tree Cellular, Inc.,
completed the following transactions during April 2012, its first month of operations:

Apr 1	Received $19,800 and issued common stock.
2	Purchased $200 of office supplies on account.
4	Paid $14,300 cash for land to use as a building site.
6	Performed service for customers and received cash of $2,600.
9	Paid $100 on accounts payable.
17	Performed service for UFax on account totaling $1,900.
23	Collected $100 from UFax on account.
30	Paid the following expenses: salary, $1,900; rent, $1,300.

1.Record the transactions in the journal of Doherty Tree Cellular, Inc. Key transactions by date and include an explanation for each entry.

CLASS, LETS TAKE RECORDING STEP 1 STEP FURTHER - THE TRIAL BALANCE

Now that we know what the accounting equation is and we have some experience with Journal Entries.

Letâs review the process and take the recording process one step further.

STEP 1) Analyze transaction: As an actual accountant, we determine if a transaction should be recorded by analyzing source documents.

For example: If the Company makes a sale; they will complete a sales document (or sales
tape is generated). If the Company purchases something a purchase invoice is forwarded to Accounting. There is a different type of source documents for different types of transactions.

Note: as an accountant a large part of the battle is making sure there is a source document for all transactions and that all departments capture and forward these documents to Accounting!

STEP 2) Accounting prepares journal entry: for each transaction based on GAAP. (Mostly using the constraints, assumptions, principles we've discussed: materiality, conservatism, matching, revenue recognition, etc).

The entry is entered into a Journal for those types of Transactions (There is a Sales Journal, A/P Journal for purchases, Payroll journal for payroll related entries, General Journal for misc. entries., etc.

Journal entries are made in the proper form, and include: date, description, indent of credit side of each entry.

STEP 3) The Journal entry is posted to General ledger; which includes all activity for all accounts.

However, the recording process is not over. Letâs talk about the trial balance. Please answer ALL however only post ONE question at a time to allow more to participate.

1) Why do we prepare it?

apricotox859

A journal is used to chronologically record all transactions ofa business. These transactions are then posted to the ledger.Consider the steps involved in recording transactions in the booksof account and respond to the following:

1. Discuss whether entering a transaction in a journal andposting it again in the ledger involves unnecessary duplication ofwork.

goldcrocodile14

ACC-1A Lecture Notes - Lecture 22: General Ledger, The Ledger, Trial Balance

Document Summary

Get access

Related Documents

ACC-1A Lecture Notes - Lecture 6: Accounts Payable, Promissory Note, General Ledger

ACC-1A Lecture Notes - Lecture 29: Promissory Note, Current Asset, Accounts Receivable

ACC-1A Lecture Notes - Lecture 17: Financial Statement, Income Statement, Matching Principle

Related Questions