Do attendance

7 min

-Pass out notebooks for the 5 min write

-Do attendance and put sheet on the door

-Have students write in their notebooks about what they learned yesterday and anything else they need to express

-Collect notebooks after the 5 min.

Review

3

-Read each term out loud to verify pronunciation for students (defin. Overhead)

-Point out terms or parts of terms that should already be familiar to most students, such as accounts payable and accounts receivable

Posting to a General Ledger

5

-Explain the frequency of posting: General ledger accounts are usually not posted daily because balances are needed only to prepare financial statements

-Explain that the number of transactions determines how frequently entries are posted to the general ledger

-Remind students that amounts in general amount columns are posted individually to the accounts written in the Account Title Column

-Demonstrate:

-Describe each of the five steps for posting from a general amount column to general ledger (pg276) (T2)

1.      Date

2.      Journal number page

3.      Post $ amount

4.      Account Balance

5.      Account Number

Posting to a general ledger

5

-Do the sample problem bottom of page 276 & 277-students write in workbook on an extra sheet (T1)

-Posting steps

1. Write the date in the date column of the account
2. Write the journal page number in Post Ref. Column of the account
3. Write the debit or credit amount in the appropriate column
4. Add the amount in the debit column to the previous balance in the Balance Debit or Credit column
5. Write the general ledger account number in the post reference column of the journal

Problem:  Curt paid $300 for office supplies, act #110

Explain more on the General journal

5

-Emphasize that the amounts posted in the nine special amount columns are not posted individually

-Explain that the amounts posted in the nine special amount columns are posted only as part of the total of each of the columns to the account named in the heading column

-Explain that there are two kinds of amount column totals: general amount and special amount columns

-Explain that since general amount column entries are all posted individually, the totals are not posted.  A check mark is placed in parentheses under the totals to indicate that the totals are not posted

-Explain that special amount column totals are posted and the general ledger account number is written in parentheses under each total as posting reference

-Explain that a new page of a general ledger account must be opened whenever a page is full

-Explain that part of the process includes bringing the balance forward from the previous page

6 Steps for opening a new general ledger page (Page 278 reference)(T1)

5

1. Write the account title at the top of the page
2. Write the account number at the top of the page
3. Write the date in the date column
4. Write the word balance in the item column
5. Place a check mark in the Post. Ref. Column to show that the entry has been carried forward from previous page rather than posted from journal
6. Write the account balance in appropriate column

-Emphasize that a check mark is placed in the Post Ref. Column to indicate that this entry has not been posted form the journal

Watching for problems

During Class

Diagnose what kinds of problems students have with this lesson.  Students should not have much trouble with posting general and special amount columns to the general ledger because they learned how to do this

Problems students may be having

1. Posting accurately
2. Remembering to record posting references in both the journal and the ledger
3. Opening a new general ledger page

Term Review and Audit your Understanding

5

Call on students to define each term in the Term Review and Audit your Understanding – Note cards will be used

Class Work

5

Work together problem

Tests

5

Hand back and answer questions

Seat Work

10

On your Own

Application Problem 1

Attendance

7 min

-Pass out notebooks for the 5 min write

-Do attendance and put sheet on the door

-Have students write in their notebooks about what they learned yesterday and anything else they need to express

-Check homework for completion and record it in my grade book

-Collect notebooks after the 5 min.

-Answer questions students have from the previous write about chapter

Preview this chapter

5

-Pass out handout and Note Cards

-Have every student write their name on a note card

-Collect note cards and put them in the case marked Accounts Payable

-Explain that every name in that case is a vendor.  So every student is considered a vendor and the case is the accounts payable ledger

-To explain the controlling account, go to handout

-Accounts payable ledger is the subsidiary ledger.  The control account is what will be seen in the general ledger.  Show that the total amount from the subsidiary ledger is then placed in the control account in the general ledger and they are equal.  (handout)

Explanation of accounts payable ledger

5

-Explain that a separate account is prepared for each vendor in the accounts payable subsidiary ledger

-Explain that an account number is assigned to each vendor account to increase the ease of filing and locating the accounts

-Explain that the total of all vendor account balances in the accounts payable ledger should always equal the balance of the controlling account, Accounts Payable (handout)

-Explain that an accounts payable ledger form is designed to accommodate accounts with credit balances

-Explain that the Omni Import uses a 3-column accounts payable subsidiary ledger account form.  The form has only one Balance column, which is a credit, because all vendor accounts have a normal credit balance (pg 281)

-Explain that a separate accounts payable ledger form is prepared for each vendor (Refer to the Handout)

Demonstrate Accts Payable

5

Bring out the blank Accounts Payable Ledger (T2) and go through the 7 steps of setting up accounts payable ledger

1. Fill in the vendor name
2. Vendor number
3. Date
4. Item
5. Post Ref.  – Page number off of General ledger
6. Post if it is a debit or credit
7. Put in the CREDIT Balance

-Remind the students that accounts payable always has a credit balance, because it is a liability

Show the effect on the control account

5

-Bring out General Journal (T1)

-Problem: You bought a 5 CD’s from Sam Goody for $55 on Feb 29.  You put that amount on your Citibank credit card vendor number 250.  Record this on the general journal

5 steps

1. Date: 2/29
2. Account Name: Citibank
3. Doc. Number: P1
4. Post Ref: 250 (Vendor #)
5. Record under accounts payable: credit $55

Then post to the accounts receivable going through the same steps as before

1.  Fill in the vendor name
2.  Vendor number
3. Date
4. Item
5. Post Ref.  – Page number off of General ledger
6. Post if it is a debit or credit
7. Put in the CREDIT Balance

Expand on where to post

5

-Remind students that Omni Import’s expanded journal has two special amount columns for Accounts Payable, debit and credit

-Explain that the amounts in the special amounts columns will be posted to Accounts Payable in the general ledger as part of the column totals

-Remind students that when a purchase on account is recorded in a expanded journal, the vendor’s name is written in the Account Title of the journal

-Explain that the amount credited to Accounts Payable needs to be posted to the vendor’s account so that a record can be maintained of the amount owed to that vendor

Paying off the an account payable

5

-Remind students that when cash paid on account is recorded in the expanded journal, the vendor’s name is written in the account title of the journal

-Explain that the amount debited to accounts payable needs to be posted to the vendor’s accounts payable ledger account so that a record can be maintained of the amount owed to that vendor

Problem:  You finally got paid from work and you can pay off your credit card bill.  You pay in the amount of $55 on March 10.

Record in journal, than post it into the accounts payable ledger

-Make sure they debit to make the credit balance equal 0.

When the a page of accounts payable is full

5

-The new page must be stated for a vendor account when current page is full, so you can continue keeping track off the account

-The entry to begin a new page is not an entry posted form a journal

-Go through the 6 steps shown on page 283

1. Vendor name
2. Vendor number
3. Date
4. The word balance in item column
5. Check mark
6. Account balance

-Make sure students know that the check mark in the Post Ref column is to indicate that the balance was not posted from the journal

Completing accounts payable

5

-All the vendor accounts make up the complete accounts payable ledger

-After the accounts payable ledger has been posted for the month the credit balance in each vendor account represents the amount the business owes each vendor

Checking for confusion

During class

Students could be having trouble with

1. Understanding that the accounts payable subsidiary ledger represents only the detail of the controlling account, accounts payable
2. Understanding that the amount in a special amount column must be posted to the vendor’s account
3. Following through with posting references in both journal and the ledger

Review

5

Audit your understanding on note cards

Continue work together problem (w 1,2,3,4)

Homework

3

Application Problem 2 and on your own

Attendance

7 min

-Pass out notebooks for the 5 min write

-Do attendance and put sheet on the door

-Have students write in their notebooks about what they learned yesterday and anything else they need to express

-Check homework for completion and record it in my grade book

-Collect notebooks after the 5 min.

-Answer any questions from notebooks

Preview

5

-Handout and note cards

-Have students write their name on to the note card and hand back in. 

-Put them in the accounts receivable case and show them the relationship between accounts receivable and accounts payable and show them the differences (break down of customers and vendors for payables)

-Handout

-Show the controlling account and receivables ledger.  Then show relationship of how the receivable ledger and payable ledger work the same.  Both need a controlling account. Also look at page 286and handout

Background to accounts receivable

6

-Explain that a separate account is prepared for each customer in the accounts receivable subsidiary ledger

-Explain that an account number is assigned to each customer account to increase the ease of filing and locating the accounts

-Explain that the total of all customer account balances in the accounts receivable ledger should always equal the balance of the controlling account, Accounts Receivable

-Explain that an accounts receivable ledger form is designed to accommodate accounts with debit balances

-Explain that Omni Import uses a 3-column accounts receivable subsidiary one Balance column – Debit – because all customer accounts have a normal debit balance

-Explain that a separate accounts receivable ledger form is prepared for each customer account

-Explain that Omni Imports expanded journal has two special amount columns for accounts receivable, Debit and Credit

-Explain that the amounts in the special amount columns will be posted to Accounts Receivable in the general ledger as part of the column totals

-A sale on account is recorded in an expanded journal, the customers name is written in the Account Title column of the Journal

-Amount debited to Accounts Receivable needs to be posted to the customer’s accounts payable ledger account so that a record can be maintained of the amount owed by that customer

Steps to Posting (pg 288)

5

1. Date
2. Journal page # in Post Ref.
3. Write amount in debit or credit column
4. Balance
5. Write customer name, account number in the post Ref. Column of the journal

Problem:  Mr. Roadrunner bought a pair of shoes from the Nike store.  Mr. Roadrunner bought the shoes on account from Nike.  If the account number of Mr. Roadrunner is 440, what will the accounts receivable ledger look like. (T3)

Create a new page for a full payable accounts ledger (pg 289)

5

Same 6 steps as receivables

1. Vendor name
2. Vendor number
3. Date
4. The word balance in item column
5. Check mark
6. Account balance

-Remind the students that the check mark is not posted of the general journal

Completing Accounts (pg 290)

5

-All customer accounts make up the complete accounts receivable ledger

-After accounts receivable ledger has been posted for the month, the debit balance in each customer account represents the amount the customer owes the business (pg 290)

-Have students look at pg 290 and figure out how the totals came about on each account

Possible Problems

During class

-Understanding that the accounts receivable subsidiary ledger represents only the detail of the controlling account, Accounts Receivable

-Understand that an amount in a special amount column must be posted to the customer’s account

-Following through with posting references in both the journal and the ledger

Review

5

-Auditing your understanding, note cards from the first section also

Class work

5

Work together problem (w1, 2,3,4)

Seat work

13

On your own, application problem 3, page 1 of study guide pg 45

Attendance

7 min

-Pass out notebooks for the 5 min write

-Do attendance and put sheet on the door

-Have students write in their notebooks about what they learned yesterday and anything else they need to express

-Check homework for completion and record it in my grade book

-Collect notebooks after the 5 min.

-Answer questions from notebooks

Preview and review

3

-Ask students how they can prove the accuracy of their work in the general ledger, and explain that this lesson will help them do that

-Accounting terms and definitions introduced in this lesson: schedule of accounts payable and schedule of accounts receivable (defin. Overhead)

-Direct students to read the headings at the top of each page in this lesson and to examine the illustrations given on page 292 & 293

Explanation of why we need to prove accounts

(T4) will be used if any questions

5

-Posting errors may cause additional errors in the accounting system as described in the first paragraph

-List the three proofs of posting: cash proof, subsidiary schedules, and trial balance

-Explain at the end of each month, Omni Import prepares a schedule of accounts payable

-Explain that a schedule of accounts payable is listing of each vendor and vendor’s balance in the accounts payable ledger

-Explain that after all postings are complete, if the total accounts payable and receivable, shown on the schedule of accounts payable and receivable is the same as the controlling account, Accounts Payable and Receivable, then the accounts payable amount is proved

Problems

During class

-That it is important to prove the accuracy of posting the subsidiary ledgers

-How to prepare subsidiary schedules

Review

5

-Term review with note cards

-Audit your Understanding

Work

3

Work together problem (w 1,2,3,4)

Seat work

32

On your own

Application Problem

Mastery Problem 1^st page

Study guide section 2 pg 46

Attendance

10 min

-Pass out notebooks for the 5 min write

-Do attendance and put sheet on the door

-Have students write in their notebooks about what they learned yesterday and anything else they need to express

-Check homework for completion and record it in my grade book

-Collect notebooks after the 5 min.

-Discuss problems students have with chapter

Homework

10

-Look over homework

-Discuss mastery problem

-Discuss Study Guide

Seat work

30

Work on Challenge Problem due before test

Study guide last section pg 47

Attendance

-Collect homework for completion and record it in my grade book

-Check attendance and put attendance sheet on the door

-Ask for any questions

-Discuss problems students have with chapter

Test

-Pass out test

-Make sure everyone has a pen or pencil and a calculator

-After test students start reading chapter 13