Recording and Posting Transactions

1
Recording and Posting Transactions Extend Your
Knowledge 3.2
2
The Accounting Cycle
Prepare post-closing trial balance
9
Journalize
2
2
Close
8
Post
3
Prepare statements
7
Prepare unadjusted trial balance
4
Adjust
Prepare adjusted trial balance
6
5
3
Analyze transactions
1

Carol Finlay invested 10,000 cash into the
business. This would appear on a source
document, the bank statement, as a deposit. This
is a transaction and will therefore be recorded.
4
Analyze transactions
1
Bank Statement Finlay Interiors January 2005
Journalize
2

Jan.1 Deposit 10,000
The transaction is recorded in the general
journal as a 10,000 debit to Cash and a 10,000
credit to Carol Finlay, Capital
5
Analyze transactions
1
Journalize
2

The transaction is posted from the general
journal to the appropriate accounts in the
ledger.
Post
3
6
Analyze transactions
1
Journalize
2

Post
3
Prepare unadjusted trial balance
4
The trial balance is prepared by taking the
balance from each account in the ledger and
listing it on the trial balance.