Accounting Chapters 4 & 11 Requirements
Terms in this set (35)
Describe the two parts of an account number.
The first digit indicates in which general ledger division the account is located. The second and third digits indicate the location of the account within that division.
Group of accounts
A ledger that contains all accounts needed to prepare financial statements
The number assigned to an account
Arranging accounts, assigning account numbers, keeping records current
opening an account
writing an account title and number on the heading of an account
List the two steps for opening an account.
1. Write the account title in the heading.
2. Write the account number in the heading.
Transferring information from a journal entry to a ledger account
List the five steps of posting from the jornal to the general ledger.
1.write the date
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.write the account number in the post. ref. column of the journal
Are the totals of the general debit and credit columns posted? Why or why not?
no each seperate amount in the general debit and general credit columns of a journal is posted to the account written in the account title column
Which column totals of a journal are posted?
special amount columns
Under what conditions will an account balance be a debit?
whenever the debits in an account exceeds the credits
Under what conditions will an account balance be a credit?
whenever the credits in an account exceeds the debits
What is a correcting entry?
A journal entry made to correct an error in the ledger.
When is a correcting entry necessary?
when a transaction has been improperly journalized and posted to the ledger
When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry debited to the correct expense account?
to show the increase in this expense account
When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry credited to the incorrect expense account?
to show the decrease in this expense account
a ledger that is summarized in a single general ledger account
Accounts Payable Ledger
The subsidiary ledger containing vendor accounts for whom merchandise or other items are purchased
accounts receivable ledger
An account in a general ledger that summarizes all accounts in a subsidiary ledger
an account in a general ledger that summarizes all accounts in a subsidiary ledger
Schedule of accounts payable
a listing of vendor accounts, account balances, and total amount due all vendors
schedule of accounts receivable
a listing of customer accounts, account balances, and total amount due from all customers
What is the relationship between a controlling account and a subsidiary ledger
A controlling account summarizes all accounts in a subsidiary ledger
The balance of a controlling account equals the total of all account balances in its related subsidiary ledger
In which column of the cash payments journal are the amounts that are posted individually to the accounts payable ledger?
Accounts Payable Debit column
To which accounts are the separate amounts in the sales journal posted individually?
Customer accounts listed in the Accounts Receivable Debit column
In which column of the cash receipts journal are the amounts that are posted individually to the accounts receivable ledger?
Accounts Receivable Credit column
What accounts are listed on a schedule of accounts receivable?
All customer accounts that have balances
Which amounts in a general journal are posted individually?
Amounts in the Debit and Credit columns
List the five steps for posting to a general ledger account.
Write the date in the Date column of the account.
Write the journal page number in the Post. Ref. column of the account.
Write the amount in the Debit or Credit column of the account
Calculate and write the new account balance in the Balance Debit or Balance Credit column of the account.
Write the general ledger account number in the Post. Ref. column of the journal.
For which columns of a special journal are the column total posted to the general ledgers?
Each special amount column
In what order should special journals be posted to the general ledger?
a. Sales journal
b. Purchases journal
c. General journal
d. Cash Receipts journal
e. Cash Payments journal
What is the source document for a correcting entry affecting customer accounts?
How does a correcting entry affecting customer accounts impact the general ledger accounts?
It does not affect the general ledger accounts
How does posting a correcting entry affecting customer accounts differ from recording other general journal entries that impact subsidiary ledger accounts?
Only a reference to the subsidiary ledger account is entered in the Post. Ref. column of the general journal.
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