Opening Ledger Accounts Instructions Use the step-by-step processes presented in this

Opening Ledger Accounts Instructions Use the step-by-step processes presented in this chapter for starting new ledger pages for the following accounts. Use the accounting stationery provided in your working papers. January 1 of the current year is the date.

Posting from the General Journal to the Ledger Instructions David Serlo made the following cash investment in his business. Use the six-step process to post the entry to the ledger accounts in your working papers.

Analyzing a Source Document Instructions Analyze the transaction that is described in Memorandum 47, and then record and post the required correcting entry in your working papers.

Recording and Posting a Correcting Entry Instructions on July 7 Video Connections accounting supervisor discovered that a July 3 transaction had been recorded incorrectly. The transaction, involving the purchase of advertising in the local newspaper with a $300 check, was incorrectly journalized and posted to the Rent Expense account. In your working papers, record and post the correcting entry using Memorandum 13 as the source document.

Steps in the Posting Process a. What six steps are required to open a general ledger account? b. List the steps in the posting process.

Posting General Journal Entries a. What information is entered in the Posting Reference (Post. Ref.) column of the ledger account? Give an example. b. What information is entered in the Posting Reference (Post. Ref.) column of the general journal entry? Give an example.

Trial Balance a. What information does a trial balance contain? b. What is the purpose of a trial balance?

Trial Balance Errors a. What steps do you perform to locate trial balance errors? b. Distinguish between a slide error and a transposition error and give an example of each.

Correcting Entries a. What is the basic rule concerning mistakes in accounting? b. How do you correct an error in a journal entry that has already been posted?

Posting General Journal Transactions The accounts used by Wilderness Rentals have been opened and are included in the working papers accompanying this textbook. The general journal transactions for March of the current year are also included. Instructions Post the transactions recorded on page 1 of the general journal to the accounts in the general ledger. Identify the account with the highest debit balance.

Preparing a Trial Balance The ledger accounts for Hot Suds Car Wash are shown in your working papers. Instructions Prepare a trial balance as of March 31 of the current year. Identify the account with the highest credit balance.

Journalizing and Posting Business Transactions A partial chart of accounts for Kits & Pups Grooming follows. Instructions 1. In your working papers, open an account in the general ledger for each of these accounts. 2. Record the March transactions on page 1 of the general journal. 3. Post each journal entry to the appropriate ledger account. 4. Prove the ledger by preparing a trial balance. Identify the temporary accounts.

Journalizing and Posting Business Transactions The chart of accounts for Outback Guide Service follows. Instructions 1. In your working papers, open an account in the general ledger for each account in the chart of accounts. 2. Record the following transactions on page 1 of the general journal. 3. Post each journal entry to the appropriate accounts in the ledger. 4. Prove the ledger by preparing a trial balance. Calculate the total change in accounts payable.

Recording and Posting Correcting Entries An auditor reviewed the accounting records of Showbiz Video. The auditor wrote a list of transactions, outlined below, describing the errors discovered in the March records. The general journal for March and a portion of the general ledger are included in your working papers. Instructions 1. Record correcting entries on general journal page 22. Use March 31 as the date and Memorandum 50 as the source document for all correcting entries. 2. Some errors will not require correcting entries but will require a general ledger correction. Make the appropriate general ledger corrections. 3. Post all correcting entries to the general ledger accounts. Compute the amount that Greg Failla, Capital was overstated or understated before the correcting entries were posted.