Book 1 - Chapter 25

9.	The following is the sequence of events:
	Analyze the transaction. Use T accounts if necessary to visualize the transaction.
	Record the transaction in the journal (“journalize”).
	Transfer the information from the journal into the ledger (“postin g”).
10.	a. The date is the date of the transaction.
	b. In each journal entry, debits are recorded before all credits. (There is no required order within the debits and credits.)
	c. In the account column, on the same line as the number entered, write the exact name of the account.
	d. No, an entry is not made in the “Post. Ref.” column until the amount has been posted into a ledger account..
	e. You should always check to make sure that the total dollar amount of debits equals the total of the credits.
11.	Refer to the posting reference column. The entry here identifies the page of journal where the transaction that contains the affected account is located.
12.	An entry is made in the “Post. Ref.” (posting reference) column for each item posted into the ledger.
13.	A chart of accounts is a listing of all accounts in the ledger, with their account numbers. The accounts are assigned numbers in a logical sequence. Usually the asset accounts are assigned the lowest sequence of numbers (such as 100 sequence), then liabilities receive the next sequence (such as 200 sequence), then the owner’s capital account and drawing account, and then revenue and expense accounts. The particular types of accounts that are created will depend on the kind of business transactions for each particular business. There is no uniform or standard chart of accounts. The chart of accounts can usually be found at the front of a ledger.
14.	Yes, this could be done. The problem is that the chronological listing of the complete transactions in the journal would be lost. This very valuable information is often needed to explain changes in the accounts.

Learning Goal 25, continued

SOLUTIONS

Section V · Using a Basic Accounting System

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