LESSON 4-1

Preparing a
Chart of Accounts

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

RELATIONSHIP OF A T ACCOUNT
TO AN ACCOUNT FORM

page 91

Balance columns

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-1

CHART OF ACCOUNTS

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

page 92

LESSON 4-1

ACCOUNT NUMBERS

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

page 92

LESSON 4-1

OPENING AN ACCOUNT
IN A GENERAL LEDGER
1

page 94

1. Write the account title.

2. Write the account number.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-1

TERMS REVIEW

page 95

ledger
general ledger
account number
file maintenance
opening an account

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-1

LESSON 4-2
Posting Separate Amounts
from a Journal to a
General Ledger

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

POSTING AN AMOUNT
FROM A GENERAL DEBIT COLUMN

page 96

1. Write the date.

2. Write the journal page number.
3. Write the debit amount.

4. Write the new account balance.

5. Return to the journal and write
the account number.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-2

POSTING A SECOND AMOUNT

TO AN ACCOUNT

1
3

page 97

4
1. Write the date.
2. Write the journal page number.
3. Write the debit amount.

4. Write the new account balance.

5. Return to the journal and write
the account number.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-2

10

POSTING AN AMOUNT
FROM A GENERAL CREDIT COLUMN

page 98

5
1

3
2
4

1. Write the date.

2. Write the journal page number.
3. Write the credit amount.

4. Write the new account balance.

5. Return to the journal and write
the account number.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-2

11

TERM REVIEW

page 99

posting

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-2

LESSON 4-3
Posting Column Totals
from a Journal to a
General Ledger

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

13

CHECK MARKS SHOW THAT AMOUNTS

ARE NOT POSTED

page 100

Check mark indicates that

amounts ARE NOT posted
individually.
Check mark indicates that
general amount column
totals ARE NOT posted.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-3

14

POSTING THE TOTAL

OF THE SALES CREDIT COLUMN

page 101

5
2

4
1. Write the date.
2. Write the journal page number.
3. Write the column total.

4. Write the new account balance.

5. Return to the journal and write
the account number.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-3

15

POSTING THE TOTAL

OF THE CASH DEBIT COLUMN

page 102

1
3

4
1. Write the date.
2. Write the journal page number.
3. Write the column total.

4. Write the new account balance.

5. Return to the journal and write
the account number.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-3

16

POSTING THE TOTAL

OF THE CASH CREDIT COLUMN

page 103

5
2
4

1. Write the date.

2. Write the journal page number.
3. Write the column total.

4. Write the new account balance.

5. Return to the journal and write
the account number.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-3

LESSON 4-4
Completed Accounting
Forms and Making
Correcting Entries

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

18

JOURNAL PAGE
WITH POSTING COMPLETED

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

page 105

LESSON 4-4

19

MEMORANDUM
FOR A CORRECTING ENTRY

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

page 108

LESSON 4-4

20

JOURNAL ENTRY
TO RECORD A CORRECTING ENTRY

page 108

November 13. Discovered that a payment

of cash for advertising in October was
journalized and posted in error as a debit
to Miscellaneous Expense instead of
Advertising Expense, $140.00.
Memorandum No. 15.

Date

Debit

4
Source Document
Credit

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-4

21

TERM REVIEW

page 109

correcting entry

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 4-4