{"id":108,"date":"2024-09-06T16:46:31","date_gmt":"2024-09-06T16:46:31","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/post-to-the-ledger\/"},"modified":"2024-09-12T22:57:35","modified_gmt":"2024-09-12T22:57:35","slug":"post-to-the-ledger","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/post-to-the-ledger\/","title":{"raw":"Post to the Ledger","rendered":"Post to the Ledger"},"content":{"raw":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\r\n<ul>\r\n \t<li>Post journal entries to a general ledger<\/li>\r\n<\/ul>\r\n<\/section>&nbsp;\r\n\r\nWe now have two pages of journal entries for NeatNiks that we have prepared during the month of October. A business doing bookkeeping by hand like this might transfer (post) entries from the journal to the ledger daily, weekly, or monthly, depending on who is doing the posting and how busy that person is with other duties, and when the information is needed. Computerized accounting systems post immediately, which is one of the reasons most businesses rely on them, plus they never complain about the tediousness of their work.\r\n\r\nYou\u2019ll probably never post from a journal to a ledger once you graduate with your accounting degree, but it\u2019s important to know what is going on inside the invisible mind of your automated accounting system so you know two valuable things: (a) what data to put in and (b) how to tell if the reports you are getting from the computer make sense.\r\n\r\nRemember the timeless adage about computers: garbage in, garbage out.\r\n\r\nHere\u2019s our completed journal through October 31:\r\n<table class=\"fin-table gridded\" style=\"height: 582px;\"><caption class=\"u-clearfix\"><span style=\"text-transform: uppercase;\">Journal<\/span><span style=\"float: right;\">Page 1<\/span><\/caption>\r\n<thead>\r\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\r\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\" scope=\"col\">Date<\/th>\r\n<th style=\"height: 26px; width: 337.5px;\" scope=\"col\">Description<\/th>\r\n<th style=\"height: 26px; width: 54.5px;\" scope=\"col\">Post. Ref.<\/th>\r\n<th style=\"height: 26px; width: 57.5px;\" scope=\"col\">Debit<\/th>\r\n<th style=\"height: 26px; width: 57.5px;\" scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr style=\"height: 12px;\">\r\n<td style=\"height: 12px; width: 38.5px;\">20--<\/td>\r\n<td style=\"height: 12px; width: 337.5px;\"><\/td>\r\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\" scope=\"row\">Oct. 1<\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">Checking<\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">20,000.00<\/td>\r\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Nick Frank, Capital<\/td>\r\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">20,000.00<\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">To record initial investment by owner and deposit to bank account<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\r\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\" scope=\"row\">Oct. 4<\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">Prepaid Rent<\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">12,000.00<\/td>\r\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 4<\/span><\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\r\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">12,000.00<\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 4<\/span><\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">To record prepayment of rent on vehicle<\/td>\r\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\r\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\" scope=\"row\">Oct. 7<\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">Supplies<\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">2,600.00<\/td>\r\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 7<\/span><\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Accounts Payable<\/td>\r\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">2,600.00<\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\">\r\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 7<\/span><\/th>\r\n<td style=\"height: 12px; width: 337.5px;\">To record purchase of supplies on account<\/td>\r\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\r\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 15<\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">Checking<\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,500.00<\/td>\r\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 15<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Service Revenue<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,500.00<\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 15<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">To record cash received for services rendered<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\r\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 20<\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">Accounts Receivable<\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">7,250.00<\/td>\r\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 20<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Service Revenue<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">7,250.00<\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 20<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">To record cash billing for services rendered<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\r\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 25<\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">Insurance Expense<\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,500.00<\/td>\r\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 25<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">Contractor Expense<\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,100.00<\/td>\r\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 25<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">2,600.00<\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 25<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">To record payment of October insurance and contractors<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\r\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 26<\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">Accounts Payable<\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,000.00<\/td>\r\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 26<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,000.00<\/td>\r\n<\/tr>\r\n<tr style=\"height: 26px;\">\r\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 26<\/span><\/th>\r\n<td style=\"height: 26px; width: 337.5px;\">To record payment account<\/td>\r\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\"><span style=\"text-transform: uppercase;\">Journal<\/span><span style=\"float: right;\">Page 2<\/span><\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\">Date<\/th>\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Post. Ref.<\/th>\r\n<th scope=\"col\">Debit<\/th>\r\n<th scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20--<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Oct. 30<\/th>\r\n<td>Checking<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,600.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct. 30<\/span><\/th>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Accounts Receivable<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,600.00<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct. 30<\/span><\/th>\r\n<td>To record receipt of payments from customers on account<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Oct. 31<\/th>\r\n<td>Owner Withdrawal<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">4,000.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct. 31<\/span><\/th>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">4,000.00<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct. 31<\/span><\/th>\r\n<td>To record payment to owner<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<div><section class=\"textbox example\" aria-label=\"Example\">\r\n<h3>Making a Chart of Accounts<\/h3>\r\nNow we need the chart of accounts:\r\n<ul>\r\n \t<li>Checking<\/li>\r\n \t<li>Accounts Receivable<\/li>\r\n \t<li>Supplies<\/li>\r\n \t<li>Prepaid Rent<\/li>\r\n \t<li>Accounts Payable<\/li>\r\n \t<li>Contractor Payable<\/li>\r\n \t<li>Nick Frank, Capital Contributions<\/li>\r\n \t<li>Nick Frank, Withdrawals<\/li>\r\n \t<li>Service Revenue<\/li>\r\n \t<li>Insurance Expense<\/li>\r\n \t<li>Rent Expense<\/li>\r\n \t<li>Supplies Expense<\/li>\r\n \t<li>Contractor Expense<\/li>\r\n<\/ul>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Reference Number<\/span><\/th>\r\n<th><span class=\"u-sr-only\">Account<\/span><\/th>\r\n<\/tr>\r\n<tr>\r\n<td>110<\/td>\r\n<td>Checking<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>120<\/td>\r\n<td>Accounts Receivable<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>125<\/td>\r\n<td>Supplies<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>130<\/td>\r\n<td>Prepaid Rent<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>210<\/td>\r\n<td>Accounts Payable<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>220<\/td>\r\n<td>Contractor Payable<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>310<\/td>\r\n<td>Nick Frank, Capital<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>330<\/td>\r\n<td>Nick Frank, Withdrawals<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>410<\/td>\r\n<td>Service Revenue<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>510<\/td>\r\n<td>Insurance Expense<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>520<\/td>\r\n<td>Rent Expense<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>530<\/td>\r\n<td>Supplies Expense<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>540<\/td>\r\n<td>Contractor Expense<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/section><\/div>\r\nNotice that we have left space between the accounts to be able to add more when we need to (and that we only used three digits instead of 4, because this is a pretty small company).\r\n\r\nNow we need to create a ledger page for each account, but for now, let\u2019s just make two pages: 110 Checking, and 310 Nick Frank, Capital.\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\">\r\n<div style=\"text-transform: uppercase;\">General Ledger<\/div>\r\n<div><span style=\"float: left;\">Account: Checking<\/span><span style=\"float: right;\">Account No. 110<\/span><\/div>\r\n<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\r\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20--<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Oct<\/th>\r\n<th class=\"l\" scope=\"row\">1<\/th>\r\n<th scope=\"row\"><em>Balance<\/em><\/th>\r\n<td>a<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td class=\"r\">0.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\">\r\n<div style=\"text-transform: uppercase;\">General Ledger<\/div>\r\n<div><span style=\"float: left;\">Account: Nick Frank, Capital<\/span><span style=\"float: right;\">Account No. 310<\/span><\/div>\r\n<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\r\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20--<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Oct<\/th>\r\n<th class=\"l\" scope=\"row\">1<\/th>\r\n<th scope=\"row\"><em>Balance<\/em><\/th>\r\n<td>a<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td class=\"r\">0.00<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nNote that the opening balance is zero for both accounts since this is a new business.\r\n\r\nPosting is a simple process. We take each journal entry, line by line, and methodically, carefully transfer the information to the appropriate ledger pages.\r\n\r\nHere is the first entry posted to the ledgers:\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\">\r\n<div style=\"text-transform: uppercase;\">General Ledger<\/div>\r\n<div><span style=\"float: left;\">Account: Checking<\/span><span style=\"float: right;\">Account No. 110<\/span><\/div>\r\n<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\r\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20--<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Oct<\/th>\r\n<th class=\"l\" scope=\"row\">1<\/th>\r\n<th scope=\"row\"><em>Balance<\/em><\/th>\r\n<td>a<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td class=\"r\">0.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct<\/span><\/th>\r\n<td class=\"l\">1<\/td>\r\n<td><\/td>\r\n<td>GJ1<\/td>\r\n<td class=\"r\">20,000.00<\/td>\r\n<td><\/td>\r\n<td class=\"r\">20,000.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\">\r\n<div style=\"text-transform: uppercase;\">General Ledger<\/div>\r\n<div><span style=\"float: left;\">Account: Nick Frank, Capital<\/span><span style=\"float: right;\">Account No. 310<\/span><\/div>\r\n<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\r\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\r\n<\/tr>\r\n<tr style=\"text-transform: uppercase;\">\r\n<th class=\"c\" scope=\"col\">Debit<\/th>\r\n<th class=\"c\" scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20--<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Oct<\/th>\r\n<th class=\"l\" scope=\"row\">1<\/th>\r\n<th scope=\"row\"><em>Balance<\/em><\/th>\r\n<td>a<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td class=\"r\">0.00<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct<\/span><\/th>\r\n<td class=\"l\">1<\/td>\r\n<td><\/td>\r\n<td>GJ1<\/td>\r\n<td><\/td>\r\n<td class=\"r\">20,000.00<\/td>\r\n<td><\/td>\r\n<td class=\"r\">20,000.00<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"8\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nNote a couple of important items:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">When we post from the journal to the ledger, we do exactly as the journal tells us. If we think it\u2019s wrong, we go back to whoever analyzed the transaction and that person either makes a new journal entry or a correcting entry.<\/li>\r\n \t<li style=\"font-weight: 400;\">When we post, we note the page of the journal so that we can go back later and find our source if we need to. We used GJ1 here because the entry came from page 1 of our General Journal (some businesses use special journals for certain purposes, but NeatNiks only has a general, all-purpose journal.)<\/li>\r\n<\/ul>\r\nWe update the running total (the balance)\u2014more on that later.\r\n\r\nAnd we do one last thing: we note the account number in the POST. REF. column of the journal, like this:\r\n\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\"><span style=\"text-transform: uppercase;\">Journal<\/span><span style=\"float: right;\">Page 1<\/span><\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\">Date<\/th>\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Post. Ref.<\/th>\r\n<th scope=\"col\">Debit<\/th>\r\n<th scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20--<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Oct. 1<\/th>\r\n<td>Checking<\/td>\r\n<td class=\"c highlight\">110<\/td>\r\n<td class=\"r\">20,000.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Nick Frank, Capital<\/td>\r\n<td class=\"c highlight\">310<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">20,000.00<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\r\n<td>To record initial investment by owner and deposit to bank account<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nNot only do these posting references provide cross-references for later, but they also let you track what you have posted so that if you get distracted for a moment, you\u2019ll later know exactly where you left off.\r\n\r\n&nbsp;\r\n\r\n<section class=\"textbox tryIt\" aria-label=\"Try It\">[ohm2_question hide_question_numbers=1]25298[\/ohm2_question]\r\n[ohm2_question hide_question_numbers=1]25299[\/ohm2_question]<\/section>Now let\u2019s take a closer look at that account balance and revisit T accounts.","rendered":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\n<ul>\n<li>Post journal entries to a general ledger<\/li>\n<\/ul>\n<\/section>\n<p>&nbsp;<\/p>\n<p>We now have two pages of journal entries for NeatNiks that we have prepared during the month of October. A business doing bookkeeping by hand like this might transfer (post) entries from the journal to the ledger daily, weekly, or monthly, depending on who is doing the posting and how busy that person is with other duties, and when the information is needed. Computerized accounting systems post immediately, which is one of the reasons most businesses rely on them, plus they never complain about the tediousness of their work.<\/p>\n<p>You\u2019ll probably never post from a journal to a ledger once you graduate with your accounting degree, but it\u2019s important to know what is going on inside the invisible mind of your automated accounting system so you know two valuable things: (a) what data to put in and (b) how to tell if the reports you are getting from the computer make sense.<\/p>\n<p>Remember the timeless adage about computers: garbage in, garbage out.<\/p>\n<p>Here\u2019s our completed journal through October 31:<\/p>\n<table class=\"fin-table gridded\" style=\"height: 582px;\">\n<caption class=\"u-clearfix\"><span style=\"text-transform: uppercase;\">Journal<\/span><span style=\"float: right;\">Page 1<\/span><\/caption>\n<thead>\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\" scope=\"col\">Date<\/th>\n<th style=\"height: 26px; width: 337.5px;\" scope=\"col\">Description<\/th>\n<th style=\"height: 26px; width: 54.5px;\" scope=\"col\">Post. Ref.<\/th>\n<th style=\"height: 26px; width: 57.5px;\" scope=\"col\">Debit<\/th>\n<th style=\"height: 26px; width: 57.5px;\" scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"height: 12px;\">\n<td style=\"height: 12px; width: 38.5px;\">20&#8211;<\/td>\n<td style=\"height: 12px; width: 337.5px;\"><\/td>\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\" scope=\"row\">Oct. 1<\/th>\n<td style=\"height: 12px; width: 337.5px;\">Checking<\/td>\n<td class=\"r\" style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">20,000.00<\/td>\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\n<td style=\"height: 12px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Nick Frank, Capital<\/td>\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">20,000.00<\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">To record initial investment by owner and deposit to bank account<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\" scope=\"row\">Oct. 4<\/th>\n<td style=\"height: 12px; width: 337.5px;\">Prepaid Rent<\/td>\n<td class=\"r\" style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">12,000.00<\/td>\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 4<\/span><\/th>\n<td style=\"height: 12px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">12,000.00<\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 4<\/span><\/th>\n<td style=\"height: 12px; width: 337.5px;\">To record prepayment of rent on vehicle<\/td>\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\" scope=\"row\">Oct. 7<\/th>\n<td style=\"height: 12px; width: 337.5px;\">Supplies<\/td>\n<td class=\"r\" style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">2,600.00<\/td>\n<td style=\"height: 12px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 7<\/span><\/th>\n<td style=\"height: 12px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Accounts Payable<\/td>\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\">2,600.00<\/td>\n<\/tr>\n<tr style=\"height: 12px;\">\n<th style=\"height: 12px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 7<\/span><\/th>\n<td style=\"height: 12px; width: 337.5px;\">To record purchase of supplies on account<\/td>\n<td style=\"height: 12px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 12px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 15<\/th>\n<td style=\"height: 26px; width: 337.5px;\">Checking<\/td>\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,500.00<\/td>\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 15<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Service Revenue<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,500.00<\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 15<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">To record cash received for services rendered<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 20<\/th>\n<td style=\"height: 26px; width: 337.5px;\">Accounts Receivable<\/td>\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">7,250.00<\/td>\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 20<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Service Revenue<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">7,250.00<\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 20<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">To record cash billing for services rendered<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 25<\/th>\n<td style=\"height: 26px; width: 337.5px;\">Insurance Expense<\/td>\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,500.00<\/td>\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 25<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">Contractor Expense<\/td>\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,100.00<\/td>\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 25<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">2,600.00<\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 25<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">To record payment of October insurance and contractors<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 12px;\" aria-hidden=\"true\">\n<td style=\"height: 12px; width: 595.5px;\" colspan=\"5\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\" scope=\"row\">Oct. 26<\/th>\n<td style=\"height: 26px; width: 337.5px;\">Accounts Payable<\/td>\n<td class=\"r\" style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,000.00<\/td>\n<td style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 26<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\">1,000.00<\/td>\n<\/tr>\n<tr style=\"height: 26px;\">\n<th style=\"height: 26px; width: 38.5px;\"><span class=\"u-sr-only\">Oct. 26<\/span><\/th>\n<td style=\"height: 26px; width: 337.5px;\">To record payment account<\/td>\n<td style=\"height: 26px; width: 54.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<td class=\"r\" style=\"height: 26px; width: 57.5px;\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\"><span style=\"text-transform: uppercase;\">Journal<\/span><span style=\"float: right;\">Page 2<\/span><\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"col\">Date<\/th>\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Post. Ref.<\/th>\n<th scope=\"col\">Debit<\/th>\n<th scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20&#8211;<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Oct. 30<\/th>\n<td>Checking<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,600.00<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct. 30<\/span><\/th>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Accounts Receivable<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,600.00<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct. 30<\/span><\/th>\n<td>To record receipt of payments from customers on account<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Oct. 31<\/th>\n<td>Owner Withdrawal<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">4,000.00<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct. 31<\/span><\/th>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">4,000.00<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct. 31<\/span><\/th>\n<td>To record payment to owner<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>\n<section class=\"textbox example\" aria-label=\"Example\">\n<h3>Making a Chart of Accounts<\/h3>\n<p>Now we need the chart of accounts:<\/p>\n<ul>\n<li>Checking<\/li>\n<li>Accounts Receivable<\/li>\n<li>Supplies<\/li>\n<li>Prepaid Rent<\/li>\n<li>Accounts Payable<\/li>\n<li>Contractor Payable<\/li>\n<li>Nick Frank, Capital Contributions<\/li>\n<li>Nick Frank, Withdrawals<\/li>\n<li>Service Revenue<\/li>\n<li>Insurance Expense<\/li>\n<li>Rent Expense<\/li>\n<li>Supplies Expense<\/li>\n<li>Contractor Expense<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<th><span class=\"u-sr-only\">Reference Number<\/span><\/th>\n<th><span class=\"u-sr-only\">Account<\/span><\/th>\n<\/tr>\n<tr>\n<td>110<\/td>\n<td>Checking<\/td>\n<\/tr>\n<tr>\n<td>120<\/td>\n<td>Accounts Receivable<\/td>\n<\/tr>\n<tr>\n<td>125<\/td>\n<td>Supplies<\/td>\n<\/tr>\n<tr>\n<td>130<\/td>\n<td>Prepaid Rent<\/td>\n<\/tr>\n<tr>\n<td>210<\/td>\n<td>Accounts Payable<\/td>\n<\/tr>\n<tr>\n<td>220<\/td>\n<td>Contractor Payable<\/td>\n<\/tr>\n<tr>\n<td>310<\/td>\n<td>Nick Frank, Capital<\/td>\n<\/tr>\n<tr>\n<td>330<\/td>\n<td>Nick Frank, Withdrawals<\/td>\n<\/tr>\n<tr>\n<td>410<\/td>\n<td>Service Revenue<\/td>\n<\/tr>\n<tr>\n<td>510<\/td>\n<td>Insurance Expense<\/td>\n<\/tr>\n<tr>\n<td>520<\/td>\n<td>Rent Expense<\/td>\n<\/tr>\n<tr>\n<td>530<\/td>\n<td>Supplies Expense<\/td>\n<\/tr>\n<tr>\n<td>540<\/td>\n<td>Contractor Expense<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/section>\n<\/div>\n<p>Notice that we have left space between the accounts to be able to add more when we need to (and that we only used three digits instead of 4, because this is a pretty small company).<\/p>\n<p>Now we need to create a ledger page for each account, but for now, let\u2019s just make two pages: 110 Checking, and 310 Nick Frank, Capital.<\/p>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\">\n<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" scope=\"col\">Debit<\/th>\n<th class=\"c\" scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20&#8211;<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Oct<\/th>\n<th class=\"l\" scope=\"row\">1<\/th>\n<th scope=\"row\"><em>Balance<\/em><\/th>\n<td>a<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"r\">0.00<\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\">\n<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" scope=\"col\">Debit<\/th>\n<th class=\"c\" scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20&#8211;<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Oct<\/th>\n<th class=\"l\" scope=\"row\">1<\/th>\n<th scope=\"row\"><em>Balance<\/em><\/th>\n<td>a<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"r\">0.00<\/td>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Note that the opening balance is zero for both accounts since this is a new business.<\/p>\n<p>Posting is a simple process. We take each journal entry, line by line, and methodically, carefully transfer the information to the appropriate ledger pages.<\/p>\n<p>Here is the first entry posted to the ledgers:<\/p>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\">\n<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" scope=\"col\">Debit<\/th>\n<th class=\"c\" scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20&#8211;<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Oct<\/th>\n<th class=\"l\" scope=\"row\">1<\/th>\n<th scope=\"row\"><em>Balance<\/em><\/th>\n<td>a<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"r\">0.00<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct<\/span><\/th>\n<td class=\"l\">1<\/td>\n<td><\/td>\n<td>GJ1<\/td>\n<td class=\"r\">20,000.00<\/td>\n<td><\/td>\n<td class=\"r\">20,000.00<\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\">\n<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" colspan=\"2\" rowspan=\"2\" scope=\"col\">Date<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Item<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Post. Ref.<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Debit<\/th>\n<th class=\"c\" rowspan=\"2\" scope=\"col\">Credit<\/th>\n<th class=\"c\" colspan=\"2\" scope=\"col\">Balance<\/th>\n<\/tr>\n<tr style=\"text-transform: uppercase;\">\n<th class=\"c\" scope=\"col\">Debit<\/th>\n<th class=\"c\" scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20&#8211;<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Oct<\/th>\n<th class=\"l\" scope=\"row\">1<\/th>\n<th scope=\"row\"><em>Balance<\/em><\/th>\n<td>a<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"r\">0.00<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct<\/span><\/th>\n<td class=\"l\">1<\/td>\n<td><\/td>\n<td>GJ1<\/td>\n<td><\/td>\n<td class=\"r\">20,000.00<\/td>\n<td><\/td>\n<td class=\"r\">20,000.00<\/td>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr aria-hidden=\"true\">\n<td colspan=\"8\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Note a couple of important items:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">When we post from the journal to the ledger, we do exactly as the journal tells us. If we think it\u2019s wrong, we go back to whoever analyzed the transaction and that person either makes a new journal entry or a correcting entry.<\/li>\n<li style=\"font-weight: 400;\">When we post, we note the page of the journal so that we can go back later and find our source if we need to. We used GJ1 here because the entry came from page 1 of our General Journal (some businesses use special journals for certain purposes, but NeatNiks only has a general, all-purpose journal.)<\/li>\n<\/ul>\n<p>We update the running total (the balance)\u2014more on that later.<\/p>\n<p>And we do one last thing: we note the account number in the POST. REF. column of the journal, like this:<\/p>\n<p>&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\"><span style=\"text-transform: uppercase;\">Journal<\/span><span style=\"float: right;\">Page 1<\/span><\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"col\">Date<\/th>\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Post. Ref.<\/th>\n<th scope=\"col\">Debit<\/th>\n<th scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20&#8211;<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Oct. 1<\/th>\n<td>Checking<\/td>\n<td class=\"c highlight\">110<\/td>\n<td class=\"r\">20,000.00<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Nick Frank, Capital<\/td>\n<td class=\"c highlight\">310<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">20,000.00<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Oct. 1<\/span><\/th>\n<td>To record initial investment by owner and deposit to bank account<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Not only do these posting references provide cross-references for later, but they also let you track what you have posted so that if you get distracted for a moment, you\u2019ll later know exactly where you left off.<\/p>\n<p>&nbsp;<\/p>\n<section class=\"textbox tryIt\" aria-label=\"Try It\"><iframe loading=\"lazy\" id=\"ohm25298\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=25298&theme=lumen&iframe_resize_id=ohm25298&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><br \/>\n<iframe loading=\"lazy\" id=\"ohm25299\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=25299&theme=lumen&iframe_resize_id=ohm25299&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<p>Now let\u2019s take a closer look at that account balance and revisit T accounts.<\/p>\n","protected":false},"author":6,"menu_order":10,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Post to the Ledger\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":98,"module-header":"- Select Header -","content_attributions":[{"type":"original","description":"Post to the Ledger","author":"Joseph Cooke","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/108"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":3,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/108\/revisions"}],"predecessor-version":[{"id":1043,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/108\/revisions\/1043"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/parts\/98"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/108\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/media?parent=108"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=108"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/contributor?post=108"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/license?post=108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}