Lesson: 52
Topic: Posting the Five-Journal System
Objectives:
Students will come to appreciate a major advantage
of a specialized journal - namely the fact that column totals for any given
account can be posted, as opposed to each individual transaction.
Students
will learn to distinguish between accounts that require an account number in the
post reference, and accounts that merely require a tick as a post reference.
Students will also learn to distinguish between columns that can have their
totals posted, and columns that do not allow their totals to be posted.
Method of Instruction and Evaluation:
After a Socratic lecture on the above topics, students will post all of the
entries made in the special journals over the past four lessons. Exercise #4 on page 552 of the text.
Expectations Addressed:
The "Advanced
Accounting Practices" strand of the BAF3M Ministry of Education Curriculum
Guidelines outlines all of the following specific expectations. The expectations
addressed by this lesson have been highlighted below.
-
The
Accounting Cycle for a Merchandising Business:
-
describe the principal accounting elements particular to a merchandising
business (e.g., new accounts, cost of goods sold section, returns,
discounts);
-
identify
and describe the periodic and perpetual inventory systems and journalize
transactions using both systems;
-
assess the effects that transactions have on the accounts and financial
statements of a merchandising business;
-
record
transactions in the journals and ledgers of a merchandising business;
-
prepare a trial balance and the financial statements, including a
detailed cost of goods sold section, for a merchandising business;
-
record
the adjusting and closing entries for a merchandising business (e.g.,
accruals, inventory adjustment);
-
describe
the impact of year-end procedures, including adjusting and closing
entries, on the financial statements of a merchandising business;
-
describe
alternative accounting practices (e.g., special journals and ledgers).
-
Accounting
for Sales Tax:
-
describe
the accounting practices particular to sales tax (e.g., accounts
required, financial statement presentation);
-
record
transactions related to provincial sales tax (e.g., collections,
remittance);
-
record
transactions related to federal sales tax (e.g., collections,
remittance).
-
Computer
Applications in Accounting:
-
use
accounting or application software to record transactions for a service
business;
-
use
accounting or application software to record transactions for a
merchandising business;
-
use
accounting or application software to prepare financial statements.
Reference:
Please read this topic (pages 523 - 536) in preparation for the class.
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