Maya - Accounting Review

Accounting Review

  1. Define the following terms: Glossary Template; Source Documents
  2. Accounting Cycle - the set of accounting procedures performed in each accounting period
  3. Opening Entry - the journal entry to record the assets, liabilities, and owner's equity when a business first begins operations
  4. Compound Entry - an entry that has more than one debit or credit
  5. General Journal - a book of original entry that provides a chronological record of all transactions, including the accounts debited and credited: where transactions are first recorded
  6. General Ledger - a ledger in which accounting data is posted from journals
  7. HST Payable - the account used to record the amount of HST collected from customers
  8. HST Recoverable - the account used to record the amount of HST paid on eligible purchases
  9. Chart of Accounts - a list of all account names and numbers in the general ledger
    1. Transposition Error - when a bookkeeper manually enters data into a ledger, they may, by mistake, incorrectly transfer information from an invoice into a balance sheet
    2. Posting - the transfer of amount from journal to ledger
    3. Audit - a periodic, systematic check of accounting records and procedures by an accountant
    4. Balance-Column Ledger Account - a type of ledger account that provides a running balance on each line

Note: List is in the second sheet of the glossary template for source documents

  1. Describe the Accounting Cycle (Create a flow chart and briefly describe what happens at each stage of the cycle).

  2. Business Transactions

  3. Journalizing

  4. Posting

  5. Preparing Proof

  6. Preparing Financial Statements

  7. Beginning Accounting Period

  8. What is the Journal Recording Process? State and Explain the 4 Steps.

  9. What are the six steps in Posting? State and Explain each step.

  10. Locate the Account ➪ look at name on the account and locate it in the ledger

  11. Record the Date ➪ transaction date is recorded in the account, the month and year do not have to be rewritten if they are already on the page

  12. Enter the Amount ➪ entered in either the debit or credit column

  13. Calculate the New Balance ➪ you add the previous total with the newly added debit, then subtract the newly added credit

  14. Complete the Ledger Posting Reference Column ➪ enter the general journal page number  from which the amount was posted in the posting reference (P.R.) of the ledger account.

  • The page number is preceded by the letter J to indicate that the amount came from a specific page of the general journal
  1. Complete the Journal Posting Reference Column ➪ copy the account number from the ledger account into the P.R. column of the general journal
  • This number indicates that the amount in the general journal has been posted to the ledger