LESSON 4 4 Completed Accounting Forms and Making

LESSON 4 -4 Completed Accounting Forms and Making Correcting Entries 1. What is a correcting entry? 2. When is a correcting entry necessary? 3. When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry debited to the correct expense account? 4. When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry credited to the incorrect expense account? CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2 Competency: Understanding the Accounting Cycle for a Service Business n Objectives: n 42 Post general entries to the general ledger. n 50 Summarize the progression from source documents to journals. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -4

3 Chapter 4 Objectives n Define accounting terms related to posting from a journal to a general ledger. n Identify accounting concepts and practices related to posting from a journal to a general ledger. n Prepare a chart of accounts for a service business organized as a proprietorship. n Post separate amounts from a journal to a general ledger. n Post column totals from a journal to a general ledger. n Analyze and journalize correcting entries. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -4

4 n Correcting entry – A journal entry made to correct an error in the ledger. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -4

5 JOURNAL PAGE WITH POSTING COMPLETED CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 105 LESSON 4 -4

6 MEMORANDUM FOR A CORRECTING ENTRY CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 108 LESSON 4 -4

7 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 © 2009 South-Western, Cengage Learning LESSON 4 -4

8 TERM REVIEW page 109 In your Chapter 4 Terms Word Document and Save. AS Chapter 4 Terms. Your. Name n correcting entry CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -4

9 Exit Ticket for Chapter 4 -4 In a Word Document, Save. AS: Chapter 4 -4 AYUYour. Name Drop a copy in my In. Box today before you leave! 1. What is a correcting entry? 2. When is a correcting entry necessary? 3. When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry debited to the correct expense account? 4. When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry credited to the incorrect expense account? CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -4

10 Chapter 4 -4 Assignments Complete on Aplia n Work Together 4 -4 n On Your Own 4 -4 n Application Problem 4 -4 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -4