会计英语unit 4 Journals, Ledgers & Trial Balance.ppt

Unit 4 Journals, Ledgers & Trial Balance Ⅰ.Journals Ⅱ. Ledgers Ⅲ.Trial Balance Accounting Cycle The sequence of accounting procedures used to record, classify, and summarize accounting information is termed the accounting cycle. The accounting cycle begins with the initial recording business transactions and concludes with the preparation of formal financial statements. Accounting Cycle 1.Analyzing transactions ⅠJournals Transaction occurs Recording business transaction The journal records the following information for each transaction: (1)The transaction date (2)The names of the accounts debited and credited (3)An explanation of the transaction (4)The amounts debited and credited to each account The following are transaction of Lyntette Muncy Law Firm during the month of May. 15 Completed legal work on credit $1,000. 25 Received $1,000 for the transaction on 15th. 27 Owner Lynette withdrew $50 to pay her personal bill. 31 Paid the telephone bill of the office $100. 31 Paid the salary of the office secretary, $1,500. Required: Open related accounts and prepare a journal in the journal form given previously. 1 Began a new law practice by investing $10,000 in cash.1 Rented the office furniture and paid two months’ rent in advance $2,000. 2 Purchased office supplies on credit, $800.8 Completed a legal work for a client and immediately collect $500 cash for the work. 12 Paid for the office supplies on May 2.15 Completed legal work on credit $1,000. 25 Received $1,000 for the transaction on 15th.27 Owner Lynette withdrew $50 to pay her personal bill 31 Paid the telephone bill of the office $100.31 Paid the salary of the office secretary, $1,500. Ⅱ. Ledgers It is used to classify and summarize transactions and to prepare data for the financial statements.It is a valuable source of information for managerial purposes. The ledger account provides a means of bringing together all the information about changes in a specific asset, liability or owner’s equ