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Sept 2, Session 3 Objectives

The General Journal 1. Section Record transactions in the general journal. 2. Prepare compound journal entries.

The 3. Post journal entries to general ledger accounts. 4. Correct errors made in the journal or ledger. Objectives

The Trial Balance Worksheet 1. Complete a trial balance on a worksheet

1 2 Liabilities 3 4 5/ 6 1__ Equipment (this is an ) Record transactions in the general journal

• A general journal is a financial record for entering all types of business transactions. • Journalizing is the process of recording transactions in a journal. • An trail is a chain of references that makes it possible to trace information, locate errors, and prevent fraud. Steps

Recording a Business Transaction 1. Analyze the financial event. – Identify the accounts affected. – Classify the accounts affected. – Determine the amount of increase or decrease for each account affected. Step

2. Apply the rules of debit and credit. – Which account is debited? For what amount? – Which account is credited? For what amount? 3. Make the entry in T-account form. 4. Record the complete entry in general journal form. Steps

Post the data about transactions • A ledger (or General Ledger) is the record of final entry. It is the last place that transactions are recorded. • The ledger contains a separate form for each account. • The third step of the accounting cycle is posting to the ledger. • Posting is the process of transferring data from a journal to a ledger.

Trial Balance

• The worksheet is a form used to gather all data needed at the end of an to prepare financial statements. Complete the Trial Balance section in four steps

1. Enter the general ledger account names. 2. Transfer the general ledger account balances to the Debit and Credit columns of the Trial Balance section. 3. Total the Debit and Credit columns to prove that the trial balance is in balance. 4. Place a double rule under each Trial Balance column to show that the work in that column is complete.