Recording Transactions in a Journal
This system of recording is based upon written journals, but it is still used in the age of digital works. make sure that you indent the second Account name so that Credits/Debits are properly listed.
Also, always use the Chart of Accounts to reference the proper names for each account. The Chart of Accounts is the master list for all accounts.
Review Illustration 2-9 for a example of a Charts of Accounts.
Posting to the General Ledger
The journal is not the most efficient method for reporting transactions, but gives a macro view of the company’s financial accounts.
To create a more detailed report, a general Ledger is utilized, and the process of transferring the debit/credit information from the journal to the general ledger is known as, POSTING.
See Illustration 2-10 for an example of a General Ledger and its formatting
REVIEW Transactions 1-10: Listed on pages 72-76 of textbook.
REVIEW Illustration 2-11:
