CMIS2240 Lecture Notes - Lecture 2: General Ledger, General Journal, Accounting Equation

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redgiraffe200

15 Apr 2020

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Document Summary

The general journal is where journal entries are recorded. Account type: assets, liabilities, revenues, expenses, capital or equity, withdrawals or. Remember to keep the accounting equation in balance when you record a journal entry: When an entry is journalized in the general journal, the transaction must be posted to the general ledger. The general ledger maintains a record of every account that a company uses and shows the increases and decreases to these accounts as they occur. Most companies use a three column general ledger in which debits are posted on the left and credits are posted on the right and a third column keeps a running total of the account balance after every transaction. Once an accounting period ends, the final balance in the general ledger for each account is used to build the financial statements (balance sheet, income statement etc). A journal entry posted to the general journal:

Related Questions

PLEASE FOLLOW THE GUIDELINESâ

Posting Journal Entries to General Ledger Accounts

Journalize and post business transactions for the following account:

General Ledger

101 Cash in Bank
102 Accounts Receivable
120 Grooming Supplies
130 Office Furniture
140 Grooming Equipment
205 Accounts Payable
301 Rex s Capital
305 Rex s Withdrawals
402 Boarding Revenue
410 Grooming Revenue
505 Salary Expenses

January 2005

Jan 1	Rex invested $5,000 in the business, Memorandum 10.
Jan 3	Rex transferred furniture valued at $2,000 to the business, Memorandum 11.
Jan 10	Issued check No. 501 for $400 for grooming supplies.
Jan 15	Bought grooming equipment on account for $2000 from Pets Inc.; Invoice 201.
Jan 17	Paid Pets, Inc. $500; check No. 105.
Jan 20	Rex withdrew $1,000 cash from business; check No. 59.
Jan 29	Salary paid to employee: $300 via check No. 60.
Jan 30	Deposited $2,000 received from client for rendering service; Receipt Nos. 124-130

Guidelines:

In your working paper, open an account in the general ledger for each of these accounts.

Record the January transactions on page 1 of the general journal.

Post each journal entry to the appropriate account.

Prove the ledger account by preparing a trial balance.

Cash in Bank
Debit	Credit
$5,000.00


Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit





Rexâs Capital
Debit	Credit
	$5, 000.00





Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit

General Journal
Date	Description	Post. Ref.	Debit	Credit
20- Jan. 1	Cash	101	$5,000.00
	Rexâs Capital	301		$5,000.00

General Ledger

Account Name: Cash Account No.101

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit
20- Jan. 1		J1	$5,000.00		$5,000.00

Account Name: Account No.102

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.120

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.130

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.140

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.205

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Rexâs Capital Account No.301

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit
20-- Jan. 1		J1		5000		5000

Account Name: Account No.305

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.402

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.410

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.505

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Trial Balance

Account Number	Account Name	Trial Balance
Account Number	Account Name	Debit	Credit

fuchsiamuskrat244

PLEASE ANSWER ALL OF THESE QUESTIONSâ

Posting Journal Entries to General Ledger Accounts

Jan 1	Rex invested $5,000 in the business, Memorandum 10.
Jan 3	Rex transferred furniture valued at $2,000 to the business, Memorandum 11.
Jan 10	Issued check No. 501 for $400 for grooming supplies.
Jan 15	Bought grooming equipment on account for $2000 from Pets Inc.; Invoice 201.
Jan 17	Paid Pets, Inc. $500; check No. 105.
Jan 20	Rex withdrew $1,000 cash from business; check No. 59.
Jan 29	Salary paid to employee: $300 via check No. 60.
Jan 30	Deposited $2,000 received from client for rendering service; Receipt Nos. 124-130

Guidelines:

In your working paper, open an account in the general ledger for each of these accounts.

Record the January transactions on page 1 of the general journal.

Post each journal entry to the appropriate account.

Prove the ledger account by preparing a trial balance.

Cash in Bank
Debit	Credit
$5,000.00


Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit





Rexâs Capital
Debit	Credit
	$5, 000.00





Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit

General Journal
Date	Description	Post. Ref.	Debit	Credit
20- Jan. 1	Cash	101	$5,000.00
	Rexâs Capital	301		$5,000.00

General Ledger

Account Name: Cash Account No.101

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit
20- Jan. 1		J1	$5,000.00		$5,000.00

Account Name: Account No.102

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.120

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.130

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.140

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.205

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Rexâs Capital Account No.301

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit
20-- Jan. 1		J1		5000		5000

Account Name: Account No.305

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.402

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.410

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.505

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Trial Balance

Account Number	Account Name	Trial Balance
Account Number	Account Name	Debit	Credit

blusharmadillo628

The Polaris Company uses a job-order costing system. Thefollowing transactions occurred in October:

Raw materials purchased on account, $210,000.

Raw materials used in production, $190,000 ($152,000 directmaterials and $38,000 indirect materials).

Accrued direct labor cost of $48,000 and indirect labor cost of$21,000.

Depreciation recorded on factory equipment, $105,000.

Other manufacturing overhead costs accrued during October,$130,000.

The company applies manufacturing overhead cost to productionusing a predetermined rate of $5 per machine-hour. A total of76,100 machine-hours were used in October.

Jobs costing $511,000 according to their job cost sheets werecompleted during October and transferred to Finished Goods.

Jobs that had cost $449,000 to complete according to their jobcost sheets were shipped to customers during the month. These jobswere sold on account at 30% above cost.

Required:

1. Prepare journal entries to record the transactions givenabove.

2. Prepare T-accounts for Manufacturing Overhead and Work inProcess. Post the relevant transactions from above to each account.Compute the ending balance in each account, assuming that Work inProcess has a beginning balance of $34,000.

Raw materials purchased on account, $210,000.