LESSON 4 1 Preparing a Chart of Accounts

LESSON 4 -1 Preparing a Chart of Accounts CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

2 TERMS REVIEW n n n page 95 ledger general ledger account number file maintenance opening an account CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

3 RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM page 91 Balance columns CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

4 CHART OF ACCOUNTS CENTURY 21 ACCOUNTING © Thomson/South-Western page 92 LESSON 4 -1

5 ACCOUNT NUMBERS CENTURY 21 ACCOUNTING © Thomson/South-Western page 92 LESSON 4 -1

6 OPENING AN ACCOUNT IN A GENERAL LEDGER 1 page 94 2 1. Write the account title. 2. Write the account number. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

Exercises to learn to create a chart of accounts 7 n Work Together: n text p 95, wp 57 n OYO: n text p 95, wp 58 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

LESSON 4 -2 Posting Separate Amounts from a Journal to a General Ledger CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

9 TERM REVIEW page 99 n Posting—transferring information from a journal entry to a ledger account n Cross-reference: having information documented in two places to be able to check for accuracy CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

10 POSTING AN AMOUNT FROM A GENERAL DEBIT COLUMN 1 page 96 5 3 2 4 1. Write the date. 2. Write the journal page number. 3. Write the debit amount. 4. Write the new account balance. 5. Return to the journal and write the account number. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

11 POSTING A SECOND AMOUNT TO AN ACCOUNT 1 3 5 page 97 2 4 1. Write the date. 2. Write the journal page number. 3. Write the debit amount. 4. Write the new account balance. 5. Return to the journal and write the account number. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

12 POSTING AN AMOUNT FROM A GENERAL CREDIT COLUMN 1 page 98 5 3 2 4 1. Write the date. 2. Write the journal page number. 3. Write the credit amount. 4. Write the new account balance. 5. Return to the journal and write the account number. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

13 Exercises for posting separate amounts n Work together 4 -2: n. Text: p 99, wp 59 -61 n OYO 4 -2: n. Text: p 99, wp 62 -64 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

LESSON 4 -3 Posting Column Totals from a Journal to a General Ledger CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

15 CHECK MARKS SHOW THAT AMOUNTS ARE NOT POSTED page 100 Check mark indicates that amounts ARE NOT posted individually. Check mark indicates that general amount column totals ARE NOT posted. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

16 POSTING THE TOTAL OF THE SALES CREDIT COLUMN 3 1 page 101 5 2 4 1. Write the date. 2. Write the journal page number. 3. Write the column total. 4. Write the new account balance. 5. Return to the journal and write the account number. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

17 POSTING THE TOTAL OF THE CASH DEBIT COLUMN page 102 1 3 5 2 4 1. Write the date. 2. Write the journal page number. 3. Write the column total. 4. Write the new account balance. 5. Return to the journal and write the account number. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

18 POSTING THE TOTAL OF THE CASH CREDIT COLUMN page 103 3 1 5 2 4 1. Write the date. 2. Write the journal page number. 3. Write the column total. 4. Write the new account balance. 5. Return to the journal and write the account number. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

19 JOURNAL PAGE WITH POSTING COMPLETED CENTURY 21 ACCOUNTING © Thomson/South-Western page 105 LESSON 4 -1

20 Exercises for Posting column totals n Work Together 4 -3: n. Text: p 104, wp 59 -61 n OYO 4 -3: n. Text: p 104, wp 62 -64 n. Application problem 4 -2 & 4 -3 n. Text: 111, wp 68 -70 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

LESSON 4 -4 Completed Accounting Forms and Making Correcting Entries CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

22 TERM REVIEW page 109 n correcting entry: n a journal entry made to correct an error in the ledger CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

23 MEMORANDUM FOR A CORRECTING ENTRY CENTURY 21 ACCOUNTING © Thomson/South-Western page 108 LESSON 4 -1

24 JOURNAL ENTRY TO RECORD A CORRECTING ENTRY page 108 November 13. Discovered that a payment of cash for advertising in October was journalized and posted in error as a debit to Miscellaneous Expense instead of Advertising Expense, $140. 00. Memorandum No. 15. 1 Date 2 Debit 4 Source Document Credit 3 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1

25 Chapter 4 Assignments n Chapter 4 Study Guide n Chapter 4 Application problem 4 -1 (similar to test item) n Chapter 4 Mastery Problem n Extra Credit: Chapter 4 Challenge Problem n Test on Chapter 4 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -1