1) Using the following blank forms (make as many copies as necessary), set up the general ledger accounts for the general ledger and insert the beginning balances for the accounts from the post-closing trial balance. The balances from the post-closing trial balance become the beginning balances of the accounts for the next account period. 2) Journalize the following transactions in the general journal using the following blank form (make as many copies as needed). When making journal entries, each individual journal entry’s debits should equal its credits. (The amount for a journal entry can be incorrect or the entry can be incorrect. However, the debits still have to equal the credits even though the entry is incorrect. If the journal entry is incorrect, it can be corrected later when making adjusting/correcting journal entries. For example, if the amount is supposed to be $1,100, and for some reason the amount of $1,010 is recorded, this is acceptable—although incorrect, it can be corrected later.) The total of the debits must always equal the total of the credits for each journal entry—always. This is a fundamental GAAP that cannot be violated. a. On January 1, 2013, a payment in cash for $12,000 is made for prepaying rent for the entire year 2013. b. On January 4, 2013, accounting services are performed and payment is received in cash for the amount of $1,900. c. On January 9, 2013, a payment in cash for advertising is made in the amount of $850. d. On January 10, 2013, office supplies are purchased in the amount of $75 with cash. e. On January 14, 2013, accounting services are performed and payment is received in cash for the amount of $2,725. f. On January 20, 2013, the telephone bill for the amount of $660 is received and paid with cash. g. On January 20, 2013, the utilities bill for $2,925 is received. The bill won’t be paid until it is due on February 15, 2013. h. On January 27, 2013, accounting services are performed on account in the amount of $3,750. i. On January 28, 2013, a payment in cash for $1,500 is made for a bill from an advertising agency. 3) Post the general journal entries from the journal to the corresponding general ledger accounts, paying particular attention to the posting being made (debit or credit). Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account. Posting from the journal to the general ledger is nothing more than rearranging the information. If the debits equal the credits for a particular journal entry and the information is posted correctly, then the total of the debits should equal the total of the credits in the general ledger. 4) Calculate the balances in the general ledger accounts. (Use an Excel spreadsheet or a printing calculator, and run the numbers several times for accuracy. Often, debits won’t equal credits on the trial balance because a hand-held calculator is used and the math is done only once. Using a hand-held calculator can introduce errors. This is why an Excel spreadsheet is recommended. However, if a hand-held calculator is all that’s available to you, be sure to do the math enough times that you know the calculations are accurate.) To calculate the balances in the ledger accounts, you’ll need to do the following: 1) Add the debits. 2) Add the credits. 3) Subtract the larger amount from the other, or, alternatively, keep the running balance of the amount in the account and whether it’s a debit or credit on the ledger. 5) Create an unadjusted trial balance from the balances in the general ledger accounts. (Once again, be very careful when doing the math. When calculating the totals of the debit and credit columns, they should be equal. If not, do not continue until the debits equal the credits. An error has been made and must be found and corrected from the previous steps.) See page 129 of the text for an example of an unadjusted trial balance. Use the following blank form.
You'll get a 58.0KB .XLS file.