Accounting Bellwork
Chapter 8 provides essential insights into the general journal and general ledger within accounting. Key facts include the importance of noting "balance" when carrying forward totals in the ledger and the necessity of including source documents for each journal transaction. The chapter also discusses the work sheet's critical role in collecting information for end-of-period processes, guiding readers on preparing trial balances, ruling sections, and ensuring all accounts are listed—key steps to maintain accurate financial records. Mastering these concepts is crucial for any aspiring accountant.
Accounting Bellwork
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Presentation Transcript
Chapter 8 $ Accounting Bellwork • 3rd Hour:List FOUR facts that you can remember about the general journal or general ledger. Be specific. Examples: • When bringing a balance forward in a ledger account, you write the word balance in the description column. • When recording entries in the journal you always include the source document for each transaction. $ $ $
Chapter 8 $ The Six-Column Work Sheet $ Making Accounting Relevant The ability to organize information is an important skill. In your work, you’ll be asked to present ideas and data. $ In your classes, what information have you been asked to organize and present to others? What did you do to prepare for these presentations? $
Chapter 8 $ Section 1 Preparing the Work Sheet $ • What You’ll Learn • The purpose of the work sheet. • The kinds of information contained in the heading. • How to prepare a trial balance on a work sheet. • How to rule a section of the work sheet. $ $
Section 1 Preparing the Work Sheet (con’t.) Chapter 8 $ Why It’s Important The work sheet is a tool the accountant uses to collect all the information needed for the end-of-period activities. $ $ • Key Terms • work sheet • ruling $
Section 1 Preparing the Work Sheet (con’t.) Chapter 8 $ The Sixth Step of the Accounting Cycle: The Work Sheet A work sheet is used to collect information from the ledger accounts in one place. $ $ $
Section 1 Preparing the Work Sheet (con’t.) Chapter 8 $ The Work Sheet Heading $ (1) The name of the business(Who?) (2)The name of the accounting form (What?) (3) The period covered by the work sheet (When?) $ $
Section 1 Preparing the Work Sheet (con’t.) Chapter 8 $ The Account Name and Trial Balance Sections $ All of the general ledger accounts are listed in order on the worksheet, even those that have a zero balance. Listing all the accounts avoids accidentally omitting an account and ensures that the worksheet contains all the accounts needed to prepare the financial reports. $ $
Section 1 Preparing the Work Sheet (con’t.) Chapter 8 $ Accounts with debit balances are entered in the Trial Balance debit column. Accounts with credit balances are entered in the Trial Balance credit column. $ $ $
Section 1 Preparing the Work Sheet (con’t.) Chapter 8 $ Ruling and Totaling the Trial Balance Section • Total debits must equal total credits. $ • Ruling means “drawing a line.” • A single rule drawn under a column of amounts means that the entries above the rule are to be added or subtracted. • A double rule means that the amounts just above are totals and that no other entries will be made. $ $
Demonstration Problems Ch8-1 & 8-2
Simmons Garden Shop Worksheet For the Year Ended December 31, 20-- Holt’s Hardware Store Worksheet For the Quarter Ended September 30, 20--
Frei Consultants Inc. Worksheet For the Year Ended December 31, 2004 5945.25 757.--- 2394.--- 9395.50 813.50 2393.40 12227.50 850.--- -------- -------- 7596.48 945.--- 603.45 1800.--- 340.68 23030.88 23030.88
Section 1 Preparing the Work Sheet (con’t.) Chapter 8 $ Check Your Understanding p186 $ Thinking Critically 1 & 2 Problem 8-1 Problem 8-2 $ $
