Chapter 4 Accounting I

The expense accounts are arranged in

alphabetical order within the general ledger

The totals of general amount column in a journal

are not posted

Separate amounts in special amount columns

are not posted individually

The asset division accounts

are numbered in the 100s

Because an account form has columns for the debit and credit balance of an account

it is often referred to as the balance-ruled account form

The cash account is the

first asset account and is numbered 110

a ledger that contains all accounts needed to prepare financial statements

general ledger

The first digit of each account number indicates the

general ledger division in which the account is located

a correcting entry is necessary if a transaction was

improperly journalized and posted to the ledger

The posting reference is always recorded in the journal as the

last step in posting

Separate amounts in special amount columns are

not posted individually

Writing an account title and number on the heading of an account

opening an account

The third division of the chart is the

owner's equity division

Separate amounts in the General Debit column are

posted individually

A new account balance is calculated and recorded each time an amount is

posted to a ledger account

Trnsferring information from a journal entry to a ledger account is called

posting

transferring information from a journal entry to a ledger account

posting

List the steps to posting a General Amount Column to the General Ledger

1. Write/Record the date 2. Put the journal page number in the ledger post reference column 3. Transfer amounts 4. Determine account balance 5. Record account numbers in journal

Which columns within a journal are posted individually?

General Debit General Credit

Which columns within a journal are only the totals posted?

Sales Credit Cash Debit Cash Credit

WHat do check marks within the Post Reference Column of the journal represent?

They indicate the amounts are not posted individually

The number assigned to an account

account number

After all posting has been completed, the Post Ref. column of the journals is

completely filled in with either an account number or a check mark

an additional journal entry made to correct an incorrect journal entry

correcting entry

entries discovered before entries are posted

do not have to be corrected with a correcting entry

With the exception of the totals lines, the Post Ref, column is completely filled in with

either an account number or a check mark

Assigning account numbers and keeping records current are part of

file maintenence

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

file maintenence

The first digit of account numbers for accounts in the owner's equity ledger division

is 3

A group of accounts

ledger

A __________ is the source document for a correcting entry

memorandum

If an error requires a correcting entry, a

memorandum is prepared as the source document describing the correction to be made

A general ledger contains all accounts

needed to prepare financial statements

A check mark in the Post Ref. column of a journal indicates that

no amounts on that line are posted individually

All corrections for posting errors should be made in a way

that leaves no question as to the correct amount

A check mark int eh parenthesis below a General Debit column indicates

that the total is not posted

If an error in posting is made but not discovered until additional postings have been made to the acccount

the correct posting should be made on the next line available in the correct account

If the pay payment of cash for rest was journalized and posted in error as Debit to Miscellaneous Expense instead of Rent Expense,

the correcting entry will include a credit to Miscellaneous Expense and a debit to Rent Expense

The first digit in a 3-digit account number indicates

the general ledger division of the account

If the cash amiunt has a $15,000.00 debit balance and $3,000.00 is posted to the credit amount column,

the new account balance is written in the balance debit column

When adding a new expense account between accounts numbered 510 and 520

the new account is assigned the number 515

When adding a new expense account between accounts numbered 520 and 530

the new account is assigned the number 525

A check mark in parentheses below the General Credit column total indicates that

the total is not posted

A reason for the Post Ref, column of the journal and general leddger is to indicae

which entries need to be completed if interupted

A reason for the Post Ref. column of the journal ledger is to indicate

which entries need to be completed if interupted

The two steps for opening an account are

writing the account title and account number