Before Lunch After Lunch - Mrs. Fahey's Web...AGENDA: Monday, February 13 Before Lunch Overview of...
Transcript of Before Lunch After Lunch - Mrs. Fahey's Web...AGENDA: Monday, February 13 Before Lunch Overview of...
AGENDA: Monday, February 13
Before Lunch
Overview of Chapter 11
• Instruction
After Lunch
11-1: Posting to A/P Ledger
• Instruction, including 11-1
Work Together
• 11-1 On Your Own
• 11-1 Application Problem
1
“Getting to Know You” Survey(password: Spongebob)
www.mrsfaheysweb.weebly.com
Signed Video Forms
“I Don’t Get It“ Form
CHAPTER 11POSTING TO GENERAL AND
SUBSIDIARY LEDGERS
The Accounting Cycle
1. Source Documents
2. Journals
3. Ledgers(T-Accounts)
4. Trial Balance
5. Financial Statements
3
The Five Journals -- A ReviewJournal
TypeWhat Is Recorded? Debit Accounts Credit Accounts
Sales
Purchases
Cash Receipts
Cash Payment
General Journal
4
Sales on Account Accounts Receivable (A/R)
SalesSales Tax Payable
Purchases on Account Accounts PayablePurchases
1. Cash Sales
2. Payment on A/R
1. Cash Purchases
2. Payment on A/P
1. Expense AcctSupplies, etc. OR Purchases
2. A/P
1. Cash
2. Cash,If discount, Purchase Discount
Various things that don’t fit in Special Journals
1. Cash
2. CashIf discount:
Sales Discount
1. Sales,Sales Tax Payable
2. A/R
The Three Ledgers
1. General Ledger – individual ledger page for each account on Chart of Accounts
Includes controlling accounts that summarize accounts in Subsidiary Ledger
2. Subsidiary Ledgers
a) Accounts Receivable Ledger
Page for each charge customer
b) Accounts Payable Ledger
Page for each credit vendor
LESSON 11-1 5
What Are Ledgers? How Do They Differ From Journals?
JournalsInitial book of entry –
first place where transactions are recorded
Ledger
6
Book used to keep recordsof all relevant accounts
Assets
Liabilities
Revenues
Expenses
Capital
Section 11-1Posting to an Accounts Payable Ledger
TERMS TO KNOW
8
Subsidiary Ledger
A ledger that is summarized in a single general ledger account.
Accounts Payable Ledger
A subsidiary ledger containing only accounts for vendors, from
whom items are purchased or bought on account.
Controlling Account
An account in a general ledger that summarizes all accounts in
a subsidiary ledger.
Accounts Payable Ledger & General Ledger Controlling Account
Accounts Payable (2110)
Accounts Payable Ledger
(Lists All Vendors)
Vendor 1 (210)
Vendor 2 (220)
Vendor 3 (230)
9
CONTROLLING ACCOUNT
Contained in GENERAL LEDGER
SUBSIDIARY LEDGEROne Page Per Vendor
Accounts Payable Ledger &General Ledger Controlling Account
10
Process For PostingTo Accounts Payable
Ledger
11
1. Open Accounts Payable Ledger From for Vendor
2. Post from Purchases Journal to Accounts Payable Ledger
3. Post from Cash Payment Journal to Accounts Payable Ledger
4. Post from General Journal to Accounts Payable Ledger
5. Prove Accounts Payable Ledger
1a. Basics Of An Accounts Payable Ledger Form
12
What is it?Provides a running record of
the amount that the business owes a vendor.
VENDOR IDENTIFICATION
DATE
INCREASE IN ACCOUNT
DECREASE IN ACCOUNT
CURRENTBALANCE
1b. Opening Accounts Payable Ledger Forms
13
1 2
3 4 5 6
1. Write the vendor name.
2. Write the vendor number.
3. Write the date.
4. Write the word Balance.
5. Place a check mark in the Post. Ref. column.
6. Write the balance.
TRY IT
Start a new page for an Accounts Payable Ledger accountfor Regal Designs. The account number is 240 and
the balance on October 1 of the current year is $877.00.
14
Oct 1
Regal Designs 240
Balance √ 877 00
2. Posting From A Purchases JournalTo An Accounts Payable Ledger
15
1. Write the date.
2. Write the journal page number.
3. Write the credit amount.
4. Write the new account balance.
5. Write the vendor number.
1
2
3
4
5
TRY ITPost the Accounts Payable credit entry on line 7 of the
Purchases Journal to the accounts payable account for Regal Designs
16
240
19 P10 1403 20 2280 20
3. Posting From A Cash Payments JournalTo An Accounts Payable Ledger
17
4. Subtract the amount in the Debit column from the previous balance in
the Credit column. Write the new balance.
1. Write the date.
5. Write the vendor number.
2. Write the journal
page number.
3. Write the debit
amount.
12 3
4
5
TRY IT
18
Post the Accounts Payable Debit entry on line 15 of the Cash Payments Journal to the accounts payable account for Electro-Graphics Supply
230
20 CP15 776 00 0 00
AGENDA: Tuesday, February 13
Before Lunch
11-1
• Review
• Posting from General Journal
After Lunch
11-1: Posting to A/P Ledger
• Instruction, including 11-1 Work
Together
• 11-1 On Your Own
• 11-1 Application Problem
19
“Getting to Know You” Survey(password: Spongebob)
www.mrsfaheysweb.weebly.com
Signed Video Forms
“I Don’t Get It“ Form
Posting to Accounts Payable Ledger
20
A/P Ledger
Purchases Journal
Cash Payment Journal
General Journal
Posting to A/P Ledger from General Journal
21
Decreases Account Balance
Increases Account Balance
4a. Posting A Credit Entry From A General JournalTo An Accounts Payable Ledger
22
1. Write the date.
2. Write the general journal
page number.
3. Write the amount.
4. Add the amount in the Credit column to
the previous balance in the Credit
Balance column. Write the new balance.
5. Write the vendor number.
1 3
5
4
2
TRY ITPost the credit entry on line 5 of the General Journal to
the accounts payable account for Electro-Graphics Supply.
23
230
26 G 11 2544 000
2544 00
20 CP15 776 00
4b. Posting A Debit Entry From A General JournalTo An Accounts Payable Ledger
24
1. Write the date.
2. Write the general journal
page number.
3. Write the amount.
4. Add the amount in the Debit column to
the previous balance in the Debit
Balance column. Write the new balance.
5. Write the vendor number.
1
4
2 5
3
TRY IT
Post the debit entry on line 6 of the General Journal to the accounts payable account for Art and Things.
25
230210
28 G11 125 00 748 00
COMPLETED ACCOUNTS
PAYABLE LEDGER
26
5. Proving The Accounts Payable Ledger
LESSON 11-1 27
Schedule of Accounts Payable
A listing of vendor accounts, account balances, and total amount due to all vendors.
TRY IT
28
Prepare a schedule of accounts payable for Graphics, Inc., on October 31 of the current year for these selected accounts. Accounts Payable balance in the general
ledger on October 31 is $6,558.20.
Graphics, Inc.
Schedule of Accounts Payable
October 31, 20--
Arts and Things 748 00
Can Do Graphics 986 00
Electro-Graphics Supply 2 544 00
Regal Designs 2 280 20
Total Accounts Payable 6 588 20
YOUR TURN
29
On Your Own 11-1
Application 11-1
AGENDA: Wednesday, February 15
Before Lunch
Finish 11-1 Application
After Lunch
11-2: Posting to A/R Ledger
• Instruction, including 11-2
Work Together
• 11-2 On Your Own
• 11-2 Application Problem
30
“Getting to Know You” Survey(password: Spongebob)
www.mrsfaheysweb.weebly.com
Signed Video Forms
“I Don’t Get It“ Form
Section 11-2Posting to an Accounts Receivable Ledger
Subsidiary Ledgers
32
A/P Ledger
Purchases Journal
Cash Payment Journal
General Journal
A/R Ledger
General Journal
Cash Receipts Journal
Sales Journal
Amounts the Business Owes to Vendors:
ACCOUNTS PAYABLE
Amounts CustomersOwe to the Business:
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT
Accounts Receivable (1130)
Accounts Receivable Ledger
(Lists All Customers)
Customer 1 (110)
Customer 2 (120)
Customer 3 (130)
33
CONTROLLING ACCOUNT
Contained in GENERAL LEDGER
SUBSIDIARY LEDGEROne Page Per
Customer
34
ACCOUNTS RECEIVABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT
Process For Posting
To Accounts
Receivable Ledger
35
1. Open Accounts Receivable Ledger From for Customer
2. Post from Sales Journal to Accounts Receivable Ledger
3. Post from Cash Receipts Journal to Accounts Receivable Ledger
4. Post from General Journal to Accounts Receivable Ledger
5. Prove Accounts Receivable Ledger
36
ACCOUNTS RECEIVABLE LEDGER FORMS
1 Customer name 2 Customer number
Accounts Receivable Ledger
A subsidiary ledger containing only accounts for charge customers
TRY IT
Start a new page for an accounts receivable ledger accountfor Brandee Sparks. The account number is 140,
and the balance for October 1 of the current year is $212.00.
37
Brandee Sparks
Oct 1 Balance v 212 00
140
38
2. Posting From A Sales JournalTo An Accounts Receivable Ledger
4. Add the amount in the Debit column to the
previous balance in the Debit Balance
column. Write the new account balance.
1. Write the date.
2. Write the sales journal
page number.
3. Write the debit amount. 5. Write the customer number.
4
2
5
3
1
TRY IT
39
Post the accounts receivable debit entry on line 5 of the Sales Journal to the accounts receivable account for Brandee Sparks.
140
20 S10 576 64 788 64
40
3. Posting From A Cash Receipts Journal To An Accounts Receivable Ledger
4. Subtract the amount in the Credit column from the previous
balance in the Debit Balance column. Write the new balance.
2. Write the cash
receipts journal
page number.
5. Write the customer number.
3. Write the credit
amount.
1. Write the date.
4
1
2
3
5
TRY ITPost the accounts receivable credit entry on line 9 of the Cash Receipts
Journal to the accounts receivable account for Alfredo Lopez.
41
130
21 CR12 254 40 1 272 00
42
1. Write the date.
4. Posting A Credit Entry From A GeneralJournal To An Accounts Receivable Ledger
4
21 5
2. Write the general
journal page
number.
3. Write the amount.
4. Subtract the
amount in the
Credit column
from the previous
balance in the
Debit Balance
column. Write the
new balance.
5. Write the
customer number.
3
TRY ITPost the credit entry on line 3 of the General Journalto the accounts receivable account for David Bishop.
43
110
12 G11 55 12 183 38
44
COMPLETED ACCOUNTS RECEIVABLE LEDGER
45
5. Proving The Accounts Receivable Ledger page 313
TRY IT
46
Prepare a schedule of accounts receivable for Graphics, Inc., on October 31 of the current year. Accounts Receivable balance in the
general ledger on October 31 is $2,530.22.
Graphics, Inc.
Schedule of Accounts Receivable
October 31, 20--
David Bishop 183 38
Maria Farrell 286 20
Alfred Lopez 1 272 00
Brandee Sparks 788 64
Total Accounts Receivable 2 530 22
AGENDA: Friday, February 17
Before Lunch
Finish:
• 11-2 Work Together & On Your Own
• 11-2 Application
After Lunch
11-3: Posting from Journals to the
General Ledger
• Instruction, including 11-3 Work Together
• 11-3 On Your Own
• 11-3 Application Problem
47
“Getting to Know You” Survey(password: Spongebob)
www.mrsfaheysweb.weebly.com
Signed Video Forms
“I Don’t Get It“ Form
Section 11-3Posting from Journals to General Ledger
The Three Ledgers
1. General Ledger – individual ledger page for each account on Chart of Accounts
Includes controlling accounts that summarize accounts in Subsidiary Ledger
2. Subsidiary Ledgers
a) Accounts Receivable Ledger
Page for each charge customer
b) Accounts Payable Ledger
Page for each credit vendor
LESSON 11-1 49
Subsidiary Ledgers
50
A/P Ledger
Purchases Journal
Cash Payment Journal
General Journal
A/R Ledger
General Journal
Cash Receipts Journal
Sales Journal
Amounts the Business Owes to Vendors:ACCOUNTS PAYABLE LEDGER
Amounts Customers Owe to the Business: ACCOUNTS RECEIVABLE LEDGER
General Ledger
General Ledger
Purchases Journal
Cash Payment Journal
General Journal
What Does A General Ledger Do?
• Sorts and summarizes information
• Information relates to both balance sheet and income statement accounts
• Controlling account Account in a General Ledger that summarizes all accounts in a Subsidiary Ledger
• General Ledger accounts are regularly updated to reflect changes in account balances
51
OVERVIEW OF POSTINGS TO GENERAL LEDGER
1. Start a New Page for an Account in A General Ledger
2. Post from General Amount Columns of Cash Payments Journal to General Ledger
3. Post from General Journal to General Ledgera) Debits
b) Credits
52
53
1. Starting A New Page For An Account In A General Ledger
1 2
3 4 5 6
1. Write the account title.
2. Write the account number.
3. Write the date.
4. Write the word Balance in the Item column.
5. Place a check mark in the Post. Ref. column.
6. Write the balance.
TRY IT
54
Start a new page for a general ledger account for Supplies—Office.
The account number is 1145, and the balance for October 1 of the current year is $3,824.00.
Oct 1 Balance v 3 824 00
55
2. Posting From The General Amount Columns Of ACash Payments Journal To A General Ledger
4. Add the amount in the Debit column to the previous balance in the
Balance Debit column. Write the new balance.
5. Write the general ledger account number.
1. Write the date.
2. Write the journal
page number.
3. Write the debit
amount. 4
23
1 5
TRY IT
56
Post the October 19 General Debit entry of theCash Payments Journal to the appropriate general ledger account.
69 6019 CP15 3 893 60
57
5. Write the
general ledger
account number.
3a. Posting A Debit Entry From A General Journal To A General Ledger
4
2
3
5
1
1. Write the date.
2. Write the
general journal
page number.
3. Write the
amount.
4. Calculate and
write the new
account
balance.
58
5. Write the
general ledger
account number.
3b. Posting A Credit Entry From A General Journal To A General Ledger
4
2
3
51
1. Write the date.
2. Write the
general journal
page number.
3. Write the
amount.
4. Calculate and
write the new
account
balance.
TRY IT
59
Post the October 12 General Journal entry to the appropriate general ledger accounts.
413021401130
12
12
12
G11
G11
G11
52 00
3 12
55 12
955 00
1284 73
1406 88
TRY IT
60
Post the October 26 General Journal entry to the appropriate general ledger accounts.
413021401130
26
26
G11
G11
2 544 00
2 544 00
6 437 60
11452110
5 061 80
TRY IT
61
Post the October 28 General Journal entry to the appropriate general ledger accounts.
41021401130
26
28
G11
G11
2 544 00
125 00 2 026 35
11452110
5 061 8028 G11
21105130
125 00 4 936 80
AGENDA: Tuesday, February 21
Before Lunch
Finish:
• 11-2 On Your Own
(We’ll Work Together)
• 11-2 Application
• 11-3 Work Together & On Your Own
After Lunch
11-4: Posting Special Journal Totals
to a General Ledger
• Instruction, including 11-4 Work
Together
• 11-4 On Your Own
• 11-4 Application Problem
62
PAST DUE: Vocabulary WS
• Sheet on my website
• Print off and give me hard copy
Section 11-4Posting Special Journal Totalsto a General Ledger
Posting Special Journals to General Ledger, Part 1
64
• Differs from posting from the General Journals because you post the total of the columns several transactions at one time
• With General Journals, you post one transactions at a time
THE ORDER OF POSTING MATTERS:
1. Sales Journal
2. Purchases Journal
3. General Journal
4. Cash Receipts Journal
5. Cash Payments Journal
Posting Special Journals to General Ledger, Part 2
1. Post Sales Journal Totals
2. Post Purchase Journal Totals
65
TOTAL & CROSS REFERENCE TO GENERAL LEDGER
TOTAL & CROSS REFERENCE TO GENERAL LEDGER
Posting Special Journals to General Ledger, Part 3
66
3. Post Special Amount Columns of Cash Receipts Journal
4. Post Special Amount Columns of Cash Payments Journal
67
5. In the sales journal,
write the general ledger
account number.
1. Posting Totals Of A Sales Journal To A General Ledger
5
5
5
1
1
1
2
2
2
3
3
3
4
4
4
4. For each account,
calculate and write the
new account balance.
1. Write the date.
2. Write the sales journal
page number.
3. For each column and
account, write the
column total.
Try It:
68
Post the October 31 column totals of the Sales Journal.
(1130)
31 S10 7 377 60 8 622 33
31 31S10 6 960 00 240 295 00
(4110) (2140)
S10 417 60 1 824 48
69
1. Write the date.
2. Posting The Total Of A Purchases Journal To A General Ledger
4
41
1
3
3
5
5
2. Write the purchases
journal page number.
3. For each account,
write the purchases
journal column total.
4. For each account,
calculate and write
the new balance.
5. Write the purchases
general ledger
account number and
the accounts payable
general ledger
account number.2
2
Try It:
70
Post the October 31 column total of the Purchases Journal.
31
31
P10
P10
11 818 40
11 818 40
118 378 00
16 755 20
(5110/2110)
71
3. Posting Special Amount Column Totals Of A Cash Receipts Journal To A General Ledger
5 5 5 5 5
4
44
4
4
1
11
1
1
2
22
2
2
3
33
3
3
1. Date
2. Journal page
number
3. Column total
4. Account balance
5. Account number
Try It:
72
Post the October 31 column totals of the Cash Receipts Journal
31 31
3131
31
CP12 CP12
CP12CP12
CP12
6360 00 2 302 33 18 320 00
1099 20
258 615 00
2 923 6831 40
25 747 80
2 229 40
38 983 38
(1130) (4110) (2140) (4120) (1110)
73
4. Posting Special Amount Column Totals Of A Cash Payments Journal To A General Ledger
1. Date
2. Journal page number
3. Column total
4. Account balance
5. Account number2
2
2
3
3
3
4
4
4
5 5
5
1
1
1
Try It:
74
Post the October 31 column totals of the Cash Payments Journal
3131
31
CP15
CP15
CP15
8 656 00 8 099 20
128 48 1 387 33
18 704 16 20 279 22
(√) (√) (2110) (5120) (1110)
AGENDA: Wednesday, February 22
Before Lunch
Finish:
• 11-4 Work Together & On Your Own
• 11-4 Application
After Lunch
11-5: Correcting Errors in
Subsidiary Ledger Accounts
• Instruction, including 11-4 Work
Together
• 11-5 On Your Own
• 11-5 Application Problem
• Study Guide
75
“Getting to Know You” Survey(password: Spongebob)
www.mrsfaheysweb.weebly.com
Signed Video Forms
“I Don’t Get It“ Form
Section 11-5Correcting Errors in Subsidiary Ledger Accounts
Errors In Subsidiary Ledger AccountsSometimes Occurs for Sales on Account
Total of Accounts Receivable account is okay.
However…impacts Accounts Receivable Ledger because total owed in individual customer accounts are both overstated and understated. Why?
77
Example:
Sale on account was charged to Customer A (wrong account) instead of Customer B (right account).
Customer A’s account is overstated –appears it owes more than it does
Customer B’s account is understated --appears it owes less than it does
Process1. Journalize reversing entry in General Journal
• Involves only subsidiary accounts
• Post only to customer accounts
2. Post General Journal transactions in Accounts Receivable Ledger
78
Don’t need to journal to accounts receivable
account
79
Journalizing Correcting Entries Affecting Customer Accounts
1
2
3
4
5 6
December 10. Discovered that a sale on account to
Cumberland Center on December 3 was incorrectly charged to
the account of Country Crafters, $412.00. Memorandum No. 56.
1. Write the date. 5. Write the name of incorrectly
charged customer.2. Write the name of correct customer.
3. Write the memorandum number.
4. Write the amount.
6. Write the amount.
80LESSON 11-5
Posting Correcting Entries Affecting Customer Accounts
2
2
1
1
4
4
5
5
3
3
3. Write the amount.
2. Write the general
journal page number.
1. Write the date.
5. Write the appropriate
customer number in the
Post. Ref. columns.
4. Calculate and write the
new account balances.
TRY IT1. Journalize the following transaction on page 6 of a general journal. The
memorandum source document is abbreviated as M.
June 3 – Discovered that a sale on account to Howell Clinic on May 25, S346, was incorrectly charged to the account of Howsley Dance Studio, $414.99. M57
2. Post the items to the Accounts Receivable Ledger.
81
3
3
3
June
Howell Clinic
Howsley Studio
414 99
414 99160
414 99170
G6 414 99 414 99
G6
M57
0
DUE TODAY
• All remaining WT/OYO and Application Problems
• Study Guide
• Start on 11-5 Mastery Problem
82