4-1
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.
Transferring information from a journal entry to a
ledger account is called
posting
Which column totals of a journal are posted?
Special amount columns
An incorrect journal entry should be corrected with an
additional journal entry.
correcting entry
A business form ordering a bank to pay cash from a
bank account is known
check
List the two steps for opening an account.
1. Write the account title after the word Account in
the heading.
2.
Write the account number after the words
Account No. in the heading.
List the five steps of posting from the general columns
of a journal 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.
Return to the journal and write the account number in the Post. Ref. column of the journal.
Under what conditions will an account balance be
a debit?
Whenever the debits in an account exceed the
credits
What is a correcting entry?
A journal entry made to correct an error in the ledger
what is a checking account
A bank account from which payments can be ordered by
a depositor
what is opening an account.
Writing an account title and number on the heading of an account.
Are the totals of the General Debit and General Credit
columns posted?
Why or why not?
No. Each separate amount in the General Debit and
General Credit columns of a journal is posted to the
account written in the Account Title column.
Under what conditions will an account balance be
a credit?
Whenever the credits in an account exceed the
debits
When is a correcting entry necessary?
When a transaction has been improperly journalized
and posted to the ledger
A bank form that lists the checks, currency, and coins an
account holder is adding to the bank account
deposit slip
The procedure for arranging accounts in a general
ledger, assigning account numbers, and keeping
records current.
file maintenance
Posting an Amount from a
General Debit Column
1.
Write the date.
4.
Write the new account balance.
2.
Write the journal page
number.
3.
Write the debit amount.
5.
Return to the journal and
write the account number.
Check Marks Show That
Amounts Are Not Posted
Check mark indicates
that amounts ARE NOT
posted individually.
Check marks indicate that
general amount column
totals ARE NOT posted.
What are the three steps for correcting an incorrect
amount posted to an account?
1.
Draw a line through the incorrect amount.
2.
Write the correct amount just above the
correction in the same space.
3.
Recalculate the account balance.
A signature or stamp on the back of a check transferring
ownership is called
endorsement
A group of accounts
ledger
Posting a Second Amount to an Account
1. Write the date.
4.
Write the new account balance.
2.
Write the journal page
number.
3.
Write the debit amount.
5.
Return to the journal and
write the account number.
Posting the Total of the
Sales Credit Column
Write the date.
4.
Write the new account balance.
2.
Write the journal page number.
3.
Write the column total.
5.
Return to the journal and write
the account number.
What are the three steps for correcting an amount
posted to an incorrect column?
1.
Draw a line through the incorrect item in the
account.
2.
Record the posting in the correct amount column.
3.
Recalculate the account balance.
An endorsement consisting only of the endorser’s
signature is called
blank endorsement