Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

In the context of journal entries, what information needs to be posted to the ledger?

Only the names of the accounts used in the journal entries

Only the total balances from the trial balance

The explanations (narrations) from each journal entry only

The amounts and accounts from each journal entry, including debits and credits

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Verified step by step guidance

Understand the purpose of posting to the ledger: The ledger is a collection of accounts that tracks the financial transactions recorded in the journal. Posting ensures that each account reflects its updated balance after every transaction.

Identify the information required for posting: From each journal entry, you need to extract the account names, the amounts, and whether they are debits or credits. This ensures accurate representation of the transaction in the ledger.

Locate the appropriate ledger accounts: For each account mentioned in the journal entry, find its corresponding ledger account. If the account does not exist, create a new ledger account for it.

Post the amounts to the ledger: For each account, record the debit or credit amount in the appropriate column of the ledger. Ensure that the amounts are posted correctly to maintain the integrity of the accounting records.

Verify the postings: After posting all journal entries, check the ledger to ensure that the debits and credits are balanced and that all transactions have been accurately recorded.