Lesson 4-2 Do Now LO5 ● In your notebooks: ● Using a T-account, journalize the transaction: ● Jan 2. Received Cash from owner as an investment, $2,000.00. Receipt No. 1 ● Make the journal entry and then post to the proper accounts within the general ledger ● Remember to assign an account number © 2014 Cengage Learning. All Rights Reserved. SLIDE 1 Lesson 4-2 Posting an Amount from the Debit Column of a General Journal LO5 ● Transferring information from a journal entry to a ledger account is called posting. ● Posting sorts journal entries so that all debits and credits affecting each account are brought together ● Each amount in the debit and credit columns of a general journal is posted to account written in the Account Title Column © 2014 Cengage Learning. All Rights Reserved. SLIDE 2 Lesson 4-2 Posting an Amount from the Debit Column of a General Journal LO5 ● Numbers in Post Ref. columns of general ledger account and general journal serve three purposes: 1. Entry in account can be traced to source in journal 2. Entry in journal can be traced to where it was posted in an account 3. If posting was interrupted, the accounting personnel can see which entries in the general journal still need to be posted ● blank in the Post Ref. column of the journal means that posting for that line still needs to be completed (that’s why it’s the last step) © 2014 Cengage Learning. All Rights Reserved. SLIDE 3 Lesson 4-2 Posting an Amount from the Debit Column of a General Journal LO5 2 1 3 5 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. © 2014 Cengage Learning. All Rights Reserved. SLIDE 4 Lesson 4-2 Posting an Amount from the Credit Column of a General Journal LO5 2 1 3 5 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. © 2014 Cengage Learning. All Rights Reserved. SLIDE 5 Lesson 4-2 Posting a Debit Amount to an Account with a Balance LO5 2 1 3 5 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. © 2014 Cengage Learning. All Rights Reserved. SLIDE 6 Lesson 4-2 Posting a Debit Amount to an Account with a Credit Balance LO5 2 1 3 5 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. © 2014 Cengage Learning. All Rights Reserved. SLIDE 7 Lesson 4-2 Journal Page with Posting Completed © 2014 Cengage Learning. All Rights Reserved. LO5 SLIDE 8 Lesson 4-2 General Ledger with Posting Completed © 2014 Cengage Learning. All Rights Reserved. LO5 SLIDE 9 Lesson 4-2 General Ledger with Posting Completed © 2014 Cengage Learning. All Rights Reserved. LO5 SLIDE 10 Lesson 3-1 General Journal & General Ledger © 2014 Cengage Learning. All Rights Reserved. LO1 SLIDE 11 Lesson 4-2 Proving Cash LO6 ● Determining that the amount of cash agrees with the balance of the Cash account in the accounting records is called proving cash. ● Can do at any time, but always do so at the end of the month If the cash balance as shown in the checkbook equals the cash balance in the Cash account, cash is proved. © 2014 Cengage Learning. All Rights Reserved. SLIDE 12 Lesson 4-2 Lesson 4-2 Audit Your Understanding 1. List the five steps of posting from the general journal to the general ledger. ANSWER 1. Write the date in the Date column of the account. 2. Write the journal page number in the Post. Ref. column of the account. 3. Write the amount in the Debit or Credit column. 4. Calculate and write the new account balance in the Balance Debit or Balance Credit column. 5. Return to the journal and write the account number in the Post. Ref. column of the journal. © 2014 Cengage Learning. All Rights Reserved. SLIDE 13 Lesson 4-2 Lesson 4-2 Audit Your Understanding 2. When both debit and credit amounts have been posted to an account, what determines whether the balance is a debit or a credit? ANSWER Whenever the debits in an account exceed the credits, the balance is a debit. Whenever the credits in an account exceed the debits, the balance is a credit. © 2014 Cengage Learning. All Rights Reserved. SLIDE 14 Lesson 4-2 Lesson 4-2 Audit Your Understanding 3. Which two amounts are compared when proving cash? ANSWER The cash balance as shown in the checkbook and the cash balance in the Cash account. © 2014 Cengage Learning. All Rights Reserved. SLIDE 15 Practice Makes Perfect ● Together as a class ● 4-2 WT ● Individually/With a Partner: ● 4-2 OYO © 2014 Cengage Learning. All Rights Reserved. SLIDE 16