Name
C H A P T E R 67
Date
Class
Component
Chapter
Outline
TitleNotes
Posting Journal Entries to General Ledger Accounts
Section 1: The General Ledger
• posting—the process of transferring information from the journal to individual
general ledger accounts
A. Setting Up the General Ledger
• general ledger—a permanent record organized by account number
• In a computerized accounting system, the electronic files containing the accounts are
still referred to as the ledger, or the ledger accounts.
1. The Four-Column Ledger Account Form
• ledger account forms—used to record information about specific accounts in a
manual accounting system
2. Accounts in the Ledger
a. Opening a General Ledger Account
b. Starting a New Page for an Existing Account
B. The Usefulness of Journals and Ledgers
• Managers use ledgers to obtain summarized information.
A. The Fourth Step in the Accounting Cycle: Posting
• The ledger is sometimes called the book of final entry.
• Posting to a ledger account is completed from left to right.
1. Posting to the Roadrunner General Ledger
2. The Importance of Posting
• Posting organizes business transaction details into the proper accounts.
B. General Ledger Account Balances
1. Computing a New Account Balance
2. Showing a Zero Balance in a Ledger Account
Section 3: Preparing a Trial Balance
A. The Fifth Step in the Accounting Cycle: The Trial Balance
• proving the ledger—add all debit and credit balances to see if the two totals equal
• trial balance—a list of all the account names and their current balances
B. Finding and Correcting Errors
1. Finding Errors
• transposition error—two digits within an amount are reversed, or transposed
• slide error—a decimal point is moved by mistake
2. Correcting Entries
• correcting entry—a journal error that is recorded to fix an error
24 ■ Footer
Chapter Outline Notes
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Section 2: The Posting Process
Name
Date
CHAPTER 7
Class
Concept Assessment
Posting Journal Entries to General Ledger Accounts
PART A
Accounting Vocabulary
(7 points)
Total
Points
Student’s
Score
57
Directions: Using terms from the following list, complete the sentences below. Write the letter of the
term you have chosen in the space provided.
A. correcting entry
B. ledger
A
C. ledger account forms E. proving the ledger G. transposition error
D. posting
F. slide
H. trial balance
0. A
must be made when an error in a journal entry is discovered after posting.
1. Adding all the debit balances and all the credit balances of accounts in the ledger to
determine whether the two totals are equal is called
.
2. A
results when two numbers are accidentally reversed.
3. The process of transferring the information in a journal entry to an individual
account is called
.
4.
are the accounting stationery used to record financial information about
specific accounts.
5. A
is a proof of the equality of total debits and total credits.
6. When an amount such as $90 is written as $900, a
error has occurred.
7. A
is a book or file that contains the pages or cards for the accounts used by
a business.
PART B The Posting Process
(12 points)
Directions: Read each of the following statements to determine whether the statement is true or false.
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Answer
T
T
T
F
F
F
T
F
T
F
T
T
T
T
F
F
F
F
T
F
T
T
T
F
F
F
0. Posting to the ledger is the fourth step in the accounting cycle.
1. The accounts of a business are kept in a special book called a ledger.
2. You can easily see the increases and decreases taking place in the accounts of a
business by looking at the general journal entries.
3. Errors discovered after posting has occurred should be corrected by drawing a
line through the incorrect item and writing the correction directly above.
4. An account may be opened by writing the account title and account number on
the account form.
5. All businesses do their posting daily.
6. A trial balance is prepared before posting.
7. To avoid forgetting a step in the posting process, always post from right to left.
8. The first step in posting is to write the date of the journal entry in the Date
column of the account debited.
9. A line across the Debit balance column shows that an asset account has a zero
balance.
10. Every journal entry requires a posting to at least three ledger accounts.
11. The purpose of a trial balance is to prove the equality of the ledger.
12. If the trial balance is in agreement, there are no errors in the accounting
records.
Concept Assessment ■ 1
Name
Date
Class
Concept Assessment cont.
PART C
Determining Account Balances
(24 points)
Directions: 1. Open the ledger account by writing the account title and account number, 105.
2. Record the account balance of $450 as of June 1 of the current year.
3. Assume the following transactions have been recorded on page 1 of the general
journal. The transactions that follow affect the account, Accounts Receivable—
Amy Anderson. Post these transactions to the account of Amy Anderson.
Date
June 2
5
21
29
Transaction
Received $200 from Amy Anderson on account.
Completed services for Amy Anderson and billed her $70.
Received a check for $320 from Amy Anderson to apply to her account.
Sent Invoice 417 to Amy Anderson for services completed, $90.
ACCOUNT ___________________________________________ ACCOUNT NO. ________
DESCRIPTION
POST.
REF.
PART D Correcting Errors
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
(14 points)
Directions: Several errors are described below. Use the form below. For each error:
1. Determine whether the error will affect the totals of the trial balance.
2. Indicate whether the error requires a correcting entry.
The first item has been completed for you as an example.
Errors:
0. A $50 debit was not posted to the Office Supplies account.
1. A $200 purchase of store equipment was journalized and posted to Store Supplies.
2. A $30 job completed for Sarah James was recorded and posted to James Scott’s account.
3. A $500 check received as payment for services was journalized and posted to the capital
account.
4. A $69 debit to the withdrawals account was posted as $96.
5. A $100 debit to Cash in Bank was posted as $10.
6. After posting a $75 credit to a creditor’s account, the account balance was incorrectly
calculated.
7. A $25 debit to the Store Supplies account was posted as a credit.
Error
0
Does error Affect
Trial Balance?
Yes
Correcting
Entry Required
Error
No
4
1
5
2
6
3
7
2 ■ Concept Assessment
Does Error Affect
Trial Balance?
Correcting Entry
Required?
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
DATE
Name
Date
CHAPTER 7
Class
Quick Quiz
Posting Journal Entries to General Ledger Accounts
PART A
True or False
Directions: Read each of the following statements to determine whether the statement is true or false.
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Answer
T
F
1. The accounts in a business are kept in a book called a ledger.
T
F
2. Posting is the process of transferring information from the
journal to the ledger accounts.
T
F
3. Every posting requires the year, month, and day to be
entered in the Date column of the ledger account for every
transaction.
T
F
4. Every journal entry requires a posting to at least two
accounts.
T
F
5. If a transaction is journalized on the 6th, but not posted
until the 8th, the date of the posting should be the 8th.
T
F
6. If an account has a zero balance, it is not necessary to list
it on the trial balance.
T
F
7. A ledger is sometimes called a book of final entry.
T
F
8. Ideally, all businesses should post on a daily basis; however,
businesses having few transactions may post only once a
week.
T
F
9. An example of a transposition error is writing the number
45 when you should have written 54.
T
F
10. If you discover an error before posting, a correcting entry
is required.
Quick Quiz ■ 3
Name
Date
Class
Quick Quiz cont.
PART B
Multiple Choice
Directions: Choose the letter of the correct answer and write it in the space provided.
Answer
1. The first step in the posting process is to:
(A) post the amount.
(B) enter the page number in the Posting Reference
column of the ledger account.
(C) enter the date in the Date column of the account debited.
(D) compute the new balance.
2. If the total debits and total credits of the trial balance do
not agree, the first step in locating the error is to:
(A) re-add the debit and credit columns.
(B) find the amount you are out of balance.
(C) make certain you copied the amount correctly from the
ledger account to the trial balance.
(D) divide the amount you are out of balance by 2.
3. All of the following about a trial balance are true except:
(A) it includes all general ledger accounts.
(B) it includes only the permanent accounts.
(C) it is completed after posting.
(D) it proves the ledger.
5. Which of the following steps in the accounting cycle is
in the correct order?
(A) Post to the ledger, prepare a trial balance, journalize,
analyze each transaction, and collect source documents.
(B) Analyze each transaction, journalize, collect source
documents, prepare a trial balance, and post.
(C) Collect and verify source documents, analyze each
transaction, journalize each transaction, post to the
ledger, and prepare a trial balance.
(D) Collect and verify source documents, analyze each
transaction, prepare a trial balance, journalize each
transaction, and post to the ledger.
4 ■ Quick Quiz
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
4. Transposition errors are evenly divisible by the number:
(A) 2
(B) 3
(C) 4
(D) 9
Name
Date
CHAPTER 7
Class
Chapter Quiz
Posting Journal Entries to General Ledger Accounts
True or False
Directions: Read each of the following statements to determine whether the statement is true or false.
Answer
T
F
1. The general ledger is the record of original entry.
T
F
2. Posting is the third step in the accounting cycle.
T
F
3. The four-column ledger form has separate columns for debit
and credit balances.
T
F
4. Every account in the general ledger must have a balance.
T
F
5. A check mark is placed in the Posting Reference column of
the general journal to indicate an entry has been posted.
T
F
6. A check mark in the Posting Reference column of a ledger
form indicates that the balance was not posted from a
journal entry.
T
F
7. The debit portion of a journal entry is always posted first.
T
F
8. If the totals of the trial balance are equal, that is proof that
there are no errors in the ledger.
T
F
9. Reversing the order of two numbers is a transposition error.
T
F
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
10. A slide error occurs when a debit amount is mistakenly entered in
a credit column.
Chapter Quiz ■ 5
Name
Date
C H A P T E R 67
Class
Component TitleProblems
Demonstration
Posting Journal Entries to General Ledger Accounts
PROBLEM 7–1
Opening an Account with a Balance
Open the following accounts as of May 1 of the current year.
Account Name
Cash in Bank
Accts. Pay.—Knight Systems
Jamie Parker, Capital
Jamie Parker, Withdrawals
Professional Fees
Advertising Expense
Account Number
101
206
301
302
401
501
Balance
$3,000.00
50.00
4,000.00
600.00
1,800.00
200.00
ACCOUNT ___________________________________________ ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT ___________________________________________ ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT ___________________________________________ ACCOUNT NO. ________
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT ___________________________________________ ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT ___________________________________________ ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT ___________________________________________ ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
Demonstration Problems
Footer ■ 25
Name
Date
Class
Demonstration Problems cont.
PROBLEM 7–2
Posting
Post the following general journal transactions.
GENERAL JOURNAL
15
PAGE
.
DATE
1
20--
2
Mar.
POST.
REF.
DESCRIPTION
DEBIT
CREDIT
1
1
Accounts Receivable—Tina Taylor
5 0 00
Professional Fees
3
2
5 0 00
3
Invoice 555
4
8
5
4
Cash in Bank
8 0 00
Professional Fees
6
5
8 0 00
6
Receipt 73
7
29
8
7
Cash in Bank
1 1 0 00
Accts. Rec.—Tina Taylor
9
8
1 1 0 00
Receipt 74
10
9
10
Cash in Bank
101
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20-1
Balance
✓
2 4 7 0 00
105
Accounts Receivable—Tina Taylor
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20-Mar.
1
Balance
✓
1 1 0 00
401
Professional Fees
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20-Mar.
1
Balance
26 ■ Demonstration
Footer
Problems
✓
6 3 0 00
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Mar.
Name
Date
Class
Demonstration Problems cont.
PROBLEM 7–3 Showing Zero Balance in a Ledger Account
Post the following general journal transactions.
GENERAL JOURNAL
15
PAGE
.
DATE
1
20--
2
Oct.
POST.
REF.
DESCRIPTION
DEBIT
CREDIT
1
1
Cash in Bank
2 0 0 00
Accounts Receivable—James Garrity
3
2
2 0 0 00
3
Receipt 101
4
10
5
4
Accounts Payable—Jill Johnston
6
Cash in Bank
7
Check 340
1 0 0 00
5
1 0 0 00
6
7
8
8
9
9
10
10
101
Cash in Bank
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20--
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Oct.
1
Balance
✓
2 5 0 0 00
108
Accounts Receivable—James Garrity
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20-Oct.
1
Balance
✓
2 0 0 00
207
Accounts Payable—Jill Johnston
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20-Oct.
1
Balance
✓
1 0 0 00
Demonstration Problems
Footer ■ 27
Name
Date
Class
Demonstration Problems cont.
PROBLEM 7–4
Proving the Equality of the Ledger
Listed below are the ledger accounts of DeMaria’s Service Center.
1. Prepare a trial balance for DeMaria’s Service Center as of December 31.
2. List each account name and place its balance in the appropriate amount column.
3. Add the balances in each amount column.
4. Prove the equality of the ledger by comparing the two totals to determine whether they
are equal.
Cash in Bank
Accounts Receivable—Kevin White
Office Equipment
Store Equipment
Accounts Payable—King Suppliers
Accounts Payable—Mancuso Company
Donna DeMaria, Capital
Donna DeMaria, Withdrawals
Income Summary
Professional Fees
Miscellaneous Expense
Rent Expense
$ 2,000.00
150.00
270.00
600.00
140.00
100.00
2,500.00
700.00
—
1,320.00
40.00
300.00
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
101
105
110
115
201
205
301
302
303
401
501
505
28 ■ Demonstration
Footer
Problems
Name
Date
Class
Demonstration Problems cont.
PROBLEM 7–5
Finding Errors
Below is the trial balance for Dell’s Lawn Spray Service Company.
1. Total the two amount columns.
2. Determine the amount the trial balance is out of equality.
3. Explain the most likely types of errors that were made.
Dell’s Lawn Spray Service Company
Trial Balance
June 30, 20-4 2 0 0 00
101
Cash in Bank
105
Accounts Receivable—Estelle Andrews
3 0 0 00
110
Accounts Receivable—Paul Longo
1 7 0 00
115
Lawn Service Equipment
2 2 5 0 00
120
Office Equipment
1 5 0 0 00
201
Accounts Payable—Chemco Chemical Co.
2 7 5 5 00
205
Accounts Payable—Kapko Fertilizer Co.
1 5 5 0 00
301
Perry Dell, Capital
6 5 0 0 00
302
Perry Dell, Withdrawals
303
Income Summary
401
Lawn Service Income
501
Truck Expense
4 0 0 0 00
—
—
1 8 0 0 00
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
2 7 5 00
Demonstration Problems
Footer ■ 29
Name
Date
Class
Demonstration Problems cont.
PROBLEM 7–6
Recording and Posting a Correcting Entry
A $200 purchase of office supplies was incorrectly journalized and posted to the Store Supplies
account. Record and post the necessary correcting entry as of April 15. Use Memorandum 32 as
your source document.
GENERAL JOURNAL
PAGE
10
.
DATE
POST.
REF.
DESCRIPTION
DEBIT
CREDIT
1
1
2
2
3
3
4
4
Office Supplies
106
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DATE
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20-Apr.
1
Balance
✓
7 5 00
107
Store Supplies
ACCOUNT ___________________________________________
ACCOUNT NO. ________
DESCRIPTION
POST.
REF.
BALANCE
DEBIT
CREDIT
DEBIT
20-Apr.
1
Balance
5
30 ■ Demonstration Problems
✓
G9
3 0 0 00
2 0 0 00
5 0 0 00
CREDIT
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
DATE