Now that you understand journal entries, the next step is posting those journal entries to their related accounts. This video examines the techniques to represent these activities.
- Now that we understand the journal entries, … the next step is that those journal entries … need to be posted to their related accounts. … T accounts are used to illustrate this process … with the letters A through G showing the cross-references … to the journal entries. … A balance is showed for the end of the period. … Turns out, where only one transaction is involved, … the amount of the transaction is also the account balance. … Let's take a detailed look at the cash T account. … What can we surmise just by looking at this account? … First, what do we know? … Well, for the cash account, it being an asset, … we know that debits mean increase … and credits mean decrease. … We can tell by looking at this account … that three transactions, transactions A, C, and G, … cause cash to increase. … And we know that three transactions, … transactions B, D, and F, … cause cash to decrease. … We also know that the ending balance … in the cash account is $7,900. … We could do a similar analysis for each account. …
- Reviewing financial statements
- Analyzing transactions
- Categorizing transactions
- Obtaining financing and buying equipment
- How revenue and expenses fit in the accounting equation
- Recording the sale of goods or services
- Posting journal entries to accounts
- The accounting cycle: step by step
Skill Level Beginner
1. Review of the Financial Statements
2. Fours Steps in the Bookkeeping Process
3. How Transactions Affect the Accounting Equation
4. The General Ledger
5. Illustration of the First Three Steps in the Accounting Cycle
The role of computers3m 44s
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