基础会计(英文版)(第二版)Chapter02 Accounting Cycle I Journal

GENERAL LEDGER
④
②
ACCOUNT NO. 111
DATE ITEM POST REF.
DEBIT
200×J
an.
1
1
1000 0 0 0 00
CREDIT
BALANCE
DEBIT
CREDIT
②
1000
0 0 0 00
Posting to the General Ledger
After all the transactions posted from the journal, we can form a completer ledger. (An example can be seen on p35-38.)
A trial balance (referred to Chapter 1) can be prepared to help you prove the equality of total debit amounts and total credit amounts.
e.g.
Cash Accounts Receivable Prepaid Insurance Trucks Equipment House Accounts Payable Li, Capital Li, Drawing Income from Services Gas Expense Utilities Expense Wages Expense
PAGE 1
DATE
DESCRIPTION
200× 1
Jan.
Cash
Li, Capital
POST REF.
111
DEBIT
③
CREDIT
1000 0 0 0 00
1000 0 0 0 00
Original investment by Mr. Li in Guangli Services.
① ACCOUNT Cash
e.g.
Guangli Services Chart of Accounts
Assets (100-199) 111 Cash 112 Accounts Receivable 113 Prepaid Insurance 121 Trucks 123 Equipment 125 House
Liabilities (200-299) 211 Accounts Payable
Owner’s Equity (300-399) 311 Li, Capital 312 Li, Drawing
Revenue (400-499)
411
Income from Services
Expenses (500-599) 511 Gas Expense 512 Utilities Expense 513 Wages Expense
Guangli Services Trial Balance
January 31, 200×
DEBIT 444 450
1 300 3 600 240 000 9 000 360 000
500
200 250 9 000 1 068 300
CREDIT
40 000 1 000 000
28 300 1 068 300
Reference column of the ledger account (cross-reference); ➢ Insert the ledger account number in the Posting
Reference column of the journal.
e.g.
GENERAL JOURNAL
ACCOUNT
GENERAL LEDGER
ACCOUNT NO.
DATE ITEM POST DEBIT REF.
CREDIT
BALANCE
DEBIT
CREDIT
The Chart of Accounts
Chart of accounts: the official list of all the accounts and their account numbers.
Chapter 2
Accounting Cycle (I) Journalizing, Posting and Preparing Trial Balance
Accounting Cycle
Accounting cycle: a sequence of accounting procedures which are repeated continuously during each accounting period.
Posting to the GenBiblioteka Baidural Ledger
Posting: The process of transferring the journal entries from the journal to ledger accounts.
Generally, we follow four steps:
➢ Enter the date of transaction; ➢ Enter the amount of transaction and the new balance of
the account; ➢ Insert the page number of the journal in the Posting
Accounting Cycle
journalize business transactions
journalize and post the adjusting entries
journalize and post the closing entries
post journal entries to ledger accounts
An accounting period/fiscal period: any span of time covering a complete accounting cycle.
An accounting year/fiscal year: an accounting period composed of twelve consecutive months.
prepare financial statements
prepare a post-closing trial balance
prepare a trial balance
complete a work sheet
The General Ledger
General ledger: a book containing all the ledger accounts of a business.