Recording and Posting Transactions Extend Your Knowledge: 3.2
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Recording and Posting Transactions Extend Your Knowledge: 3.2
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Recording and Posting Transactions Extend Your Knowledge: 3.2. Analyze transactions. 1. The Accounting Cycle. Prepare post-closing trial balance. 9. Journalize. 2. 2. Close. 8. Post. 3. Prepare statements. 7. Prepare unadjusted trial balance. 4. Adjust. Prepare - PowerPoint PPT Presentation
Transcript of Recording and Posting Transactions Extend Your Knowledge: 3.2
Recording and Posting Transactions
Extend Your Knowledge: 3.2
Journalize
Post
Prepare statements
Close
Prepare post-closingtrial balance
Adjust
Prepareunadjusted trial balance
Prepare adjusted
trial balance
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9Analyze transactions1
The Accounting Cycle
Analyze transactions
1
Bank Statement
Finlay Interiors
January 2005
Jan.1 Deposit $10,000
Purchase Ticket
Note PayableClient Billing
Service Contract
Carol Finlay invested $10,000 cash into the business. This would appear on a source document, the bank statement, as a deposit. This is a transaction and will therefore be recorded.
Analyze transactions
1
Journalize2
Bank Statement
Finlay Interiors
January 2005
Jan.1 Deposit $10,000
GENERAL JOURNAL Page 1
Date Account Titles and Explanation PR Debit Credit Jan. 1 Cash 101 1 0 000 Carol Finlay, Capital 301 10 000 Investment by owner
The transaction is recorded in the general journal as a $10,000 debit to Cash and a $10,000 credit to Carol Finlay, Capital
GENERAL JOURNAL Page 1
Date Account Titles and Explanation PR Debit Credit Jan. 1 Cash 101 1 0 000 Carol Finlay, Capital 301 10 000 Investment by owner
Analyze transactions
1
Journalize2
Post3
GENERAL LEDGER
Cash ACCOUNT NO. 101
DATE EXPLANATION PR DEBIT CREDIT BALANCE
Jan. 1 G1 10 0 0 0 10 0 0 0
Carol Finlay, Capital ACCOUNT NO. 301
DATE EXPLANATION PR DEBIT CREDIT BALANCE
Jan . 1 G1 10 0 0 0 10 0 0 0
The transaction is posted from the general journal to the appropriate accounts in the ledger.
GENERAL LEDGER
Cash ACCOUNT NO. 101
DATE EXPLANATION PR DEBIT CREDIT BALANCE
Jan. 1 G1 10 0 0 0 10 0 0 0
Jan. 31 G1 8 0 7 0
Carol Finlay, Capital ACCOUNT NO. 301
DATE EXPLANATION PR DEBIT CREDIT BALANCE
Jan . 1 G1 10 0 0 0 10 0 0 0
Analyze transactions
1
Journalize2
Post3
Prepareunadjusted trial balance
4
The trial balance is prepared by taking the balance from each account in the ledger and listing it on the trial balance.
