Project 4

1. Project 4

1.20. Page 4

Training Room 5

Training Room 5: Posting the Opening Entry

Training Room 5 Summary

This is the last training room to prepare the accounting records to start an accounting system. Let’s review.

You now have completed setting up two books to start an accounting system. What are they?¬†

This is a keyboard with an altered Enter key that says Are You Sure?

Check your answer.

The two books are called the general journal and the general ledger.

What is the table of contents called, and which book is it in?

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The table of contents is called the chart of accounts, and it is located in the front of the general ledger.

What number do the following types of accounts start with? assets? liabilities? owner’s equity? revenue? expenses?

Check your answer.

assets—1

liabilities—2

owner’s equity—3

revenue—4

expenses—5

What accounts are called temporary capital accounts?

Check your answer.

Drawing, income summary, revenue, and expenses are called temporary capital accounts.

Placing amounts into a journal is called making a/an _____.

Check your answer.

Placing amounts into a journal is called making an entry.

Placing amounts into a ledger is called _____.

Check your answer.

Placing amounts into a ledger is called posting.

Go to Summary 5 and answer the review questions.

You now have competed all of the steps necessary to set up an accounting system. Continue to the final project, where you will complete a simulation and put together a portfolio to set up the necessary books to start your own business.