Project 4
1. Project 4
1.18. Page 2
Training Room 5: Posting the Opening Entry
What I Need to Know
You were already introduced to a ledger in Training Room 2: Chart of Accounts. Recall that the chart of accounts is similar to a table of contents at the front of a book called a ledger, which includes a list of all the account titles and the account numbers. Each account has its own page or pages identifying the financial activities in that account.
In Training Room 3: Opening Accounts, you opened each of these accounts in the ledger. This included only the account name and the account number for each account.
In this training room, you will transfer the amounts from the general journal into the accounts that you opened in Training Room 3. The transferring of any amounts from the journal to the ledger is called posting.
View the multimedia piece titled Enter and Post.
Why Is This Important?
Posting the opening entry transfers each beginning balance into the appropriate ledger account. This is similar to depositing your first amount of money into a bank account. Now the account is not only open, but there is money in it. When the business opens its doors to customers, there will be more activity in each of these accounts. The ledger brings the activities of each account together into one place so that it is easy to see how much money is in each account at any given time.
What Do I Need to Do?
Recall from the last training room that the journal is often referred to as the book of original entry because it is the first book where business transactions are recorded. Businesses may post daily from their journal or perhaps less often, depending on how many transactions they have. Always enter first and then post.
Open Gurpreet’s General Journal, and save this in your FIN1015 Course Folder.
This journal is complete with the opening entry. You are now going to post from this journal into Gurpreet’s Snow Removal Ledger.
Open Gurpreet’s Ledger, and save it in your FIN1015 Course Folder.
Notice that the first tab at the front of the ledger is the Chart of Accounts.
If you click on the Assets, Liabilities, Owner’s Equity, Revenue, or the Expenses tab, you will see that all of the accounts from the Chart of Accounts tab have been opened. That means that they all have an account title and an account number.
Watch the video clip titled Posting the Opening Entry for instructions on posting. Note that this instruction video is available to you to view at any time in the Toolkit under Tips and Tricks.
Gurpreet’s opening entry should now be posted into his ledger. Check Gurpreet’s Snow Removal Completed General Journal.
Check Gurpreet’s Snow Removal Completed Ledger.