FABM1

Quarter 3 – Module 8:
Posting Transactions in the Ledger and
Preparing Trial Balance
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master on how to post transaction in the ledger and prepare trial balance. The
scope of this module permits it to be used in many different learning situations.
The language used recognizes the diverse vocabulary level of students. The lessons
are arranged to follow the standard sequence of the course. But the order in which
you read them can be changed to correspond with the textbook you are now using.

The module is divided into two lessons, namely:

 Lesson 1 – Posting Transactions in the Ledger
 Lesson 2 – Preparing Trial Balance

After going through this module, you are expected to:

1. define posting;
2. enumerate the steps in posting to the ledger;
3. post transaction to the ledger;
4. define trial balance;
5. enumerate the steps in preparing trial balance;
6. prepare trial balance
7. identify the common errors in preparing trial balance.
 What I Know

Read and understand each item carefully. Choose the correct answer and write the
corresponding letter of your choice on a separate sheet of paper.

1. Which of the following is NOT part of the general ledger?

a. Account balance c. Date
b. Account name d. Item

2. It is the book of final entry

a. Journal c. Trial Balance
b. Ledger d. Chart of Accounts

3. The process of transferring of information from journal to ledger is called

a. Auditing c. Journalizing
b. Balancing d. Posting
4. The account number in the ledger is originally listed in
a. Journal c. Trial Balance
b. Ledger d. Chart of accounts

5. In posting process, which of the following information are NOT originally

found in the journal?
a. Account number c. Credit amount
b. Account title d. Debit amount

6. A type of account in the ledger where the total debit and total credit are
equal
a. Closed account c. Debit account
b. Credit account d. Open account

7. The first part of the trial balance is

a. Date c. Totals
b. Heading d. Transaction

8. When the total debit and total credit in the trial balance are not equal the
account is called
a. Closed account c. Debit account
b. Credit account d. Open account

9. When the trial balance is out of balance and the error is a difference of P10,
that error has been made in
a. Transposition error
b. Addition or subtraction
c. Posting on the wrong side of the account
d. An account balance has been omitted from the trial balance.
10. The first step in posting transactions to the ledger is
A. Enter the account number.
B. Copy the date of the journal to the ledger.
C. Enter the posting reference from the ledger to the journal.
D. Copy the debit and credit account of the journal to the ledger.

11. The last step in posting transactions to the ledger is

A. Enter the account number
B. Copy the date of the journal to the ledger
C. Enter the posting reference from the ledger to the journal
D. Copy the debit and credit account of the journal to the ledger

12. It is a device used to prove the equality of the debits and the credits.
A. Journal C. Trial Balance
B. Ledger D. Chart of accounts

13. The following are types of account that can be seen in the trial balance
EXCEPT
A. Closed account C. Debit account
B. Credit account D. Open account
14. When the total debits and total credits of the trial balance has a difference
divisible by 2, this error has been made in
A. Transposition error
B. Addition or subtraction
C. Posting on the wrong side of the account
D. An account balance has been omitted from the trial balance.

15. The following are examples of cases in an out of balanced trial balance
EXCEPT
A. A transaction is completely omitted.
B. A journal entry was posted twice.
C. A correct journal entry is not posted.
D. A wrong date but in the same month is entered.

Lesson Posting Transaction in the

1&2 Ledger and Preparing Trial
 Balance

This module highlights the third and fourth steps of the accounting cycle, the
posting transaction to the ledger and preparing trial balance. It helps you to
understand how businesses organize their various transactions in the ledger and
how trial balance helps accountant in checking the accuracy of every account.

What’s In

Notes to the Teacher

The teacher should emphasize to learners the essential of
thorough familiarization and understanding on this lesson
because the skills on this topic will help the learners to keep
them going through the whole process of accounting cycle.

To make these two lessons very simple, posting to the ledger is just like when you
are making list for all expenditures incurred for the whole week out of the given
allowance from your parent. I’m sure you are thinking of how much you spent for
the snacks, school supplies, projects, and how much left, if any. And combining all
those expenses for the whole week according to its type, is like preparing the trial
balance. So, scenarios like these relate to our topic for today but of course, we will
apply it in a much bigger picture, in the world of business.

What’s New

The following are the five major accounts and its corresponding amount.
1. Assets - P 120,500
2. Revenues - P 86,700
 3. Expenses - P 25,300
4. Liabilities - P 48,200
5. Assets - (- P 21,350)
6. Owner’s Equity - P 550,000
7. Expenses - P 36,400
8. Liabilities - P 16,500
9. Revenues - P 52,400
10. Assets - P 15,000
11. Owner’s Equity - (- P20,000)
12.Assets - (- P75,000)
13.Expenses - P 15,800
14.Assets - P 720,300
15.Revenues - P110,900

Required: Find the correct amount of the following:

a. Total Assets = _________________________
b. Total Liabilities = _________________________
c. Total Owner’s Equity = _________________________
d. Total Revenues = _________________________
e. Total Expenses = _________________________

What is It

Welcome to the third step of the accounting cycle, posting of journal entries to the
ledger!

Posting is the process of transferring information from the journal or book of

original entry to the ledger or book of final entry. This process is the classifying
phase of accounting cycle.

In this cycle, you are task to transfer all the accounts recorded in the journal and
arrange the accounts according to its classification and account title to the ledger.

To be more organized, the ledger should be arranged in the order of assets,

liabilities, owner’s equity, revenues and expenses.

Once all accounts are posted in the ledger, it could be easy for the business to
know the balance of an account because accounts are recorder as group and the
ledger provides running balance of an account.

Posting to the ledger is a formal tool that depicts the movement of account,
increases and decreases. It can be illustrated in a simple but an informal way using
the “T-account”. The only difference is the “T-account” has no column for date, item
and post-reference.

Posting from the journal to the ledger involves the following steps:
 1. In the ledger, copy the account title of the first journal entry in the general
journal.
2. Enter the account number of the account title (refer to the chart of
accounts)
3. Copy the date of the journal and enter the date on the date column of the
ledger.
4. Copy the explanation of the journal or make a short explanation out of it
and enter under the item column of the ledger
5. Transfer the amount of debit and credit to its corresponding column in the
ledger. A debit amount in the journal is also posted as debit in the ledger
and a credit amount in the journal is likewise posted as credit in the ledger.
6. Place the page of the journal where journal entry is located in the post-
reference (PR), reference or folio column of the ledger. Write GJ-1 or J-1
which means, from general journal or from journal page 1.
7. In the journal, place the number of the account as indicated in the ledger
in the post- reference (PR), folio or reference column of the journal. Write GL-
100 or L-100 indicates that the account is from the general ledger with a
code of 100

Since you are well-equipped with the seven steps, common and let’s do the posting!
We will use the journal entries and the chart of accounts of Shane Photography in
Step 2 of accounting cycle.

GENERAL JOURNAL Page: 1

Particulars
Date (Account Titles and Explanation) PR Debit Credit
June 1 Cash 350,000
Shane, Capital 350,000
To record the initial investment per acknowledgement
receipt dated June 1, 2020

2 Taxes and licenses expense 2,100

Cash 2,100
To record business registration as follows:
Mayor’s Permit OR no. 0142 P 750
DTI Registration, OR no.0713 550
TIN Registration, OR no. 1038 800
Total P2,100

5 Photography Equipment 85,000

Photography Supplies 8,000
Cash 93,000
To record purchase of equipment and supplies
per Sales Invoice no. 097

6 Prepaid Rent 36,000

Cash 36,000
To record advance payment of rent per OR no.029

10 Cash 1,500
Photography Supplies 1,500
To record the returned supplies
 GENERAL JOURNAL Page: 2
Particulars
Date (Account Titles and Explanation) PR Debit Credit
June 15 Advertising expense 4,800
Accounts payable 4,800
To record unpaid advertisement per SOA no.109

18 Cash 60,000
Notes Receivable 25,000
Service Revenue 85,000
To record the revenue per OR no. 001

GENERAL JOURNAL Page: 2

Particulars
Date (Account Titles and Explanation) PR Debit Credit
June 24 Cash 72,000
Service Revenue 72,000
To record the service rendered per OR no. 002

25 Utilities Expense 2,300

Utilities payable 2,300
To record the unpaid utilities per SOA no. 2021

30 Salaries Expense 4,000

Cash 4,000
To record the salaries of employee

30 Accounts Payable 4,800

Cash 4,800
To record the payment of obligation

Shane Photography
Chart of Accounts
Account Assets: Account Owner’s Equity:
No. No
100 Cash 300 Shane, Capital
110 Accounts Receivable 310 Shane, Drawings
120 Notes Receivable
130 Photography Supplies
140 Prepaid Rent Revenues:
150 Prepaid Insurance 400 Service Revenue
160 Photography Equipment 410 Gain on Sale
170 Furniture and Fixtures 420 Interest Income

Liabilities: Expenses:
200 Accounts Payable 500 Rent Expense
210 Notes Payable 510 Advertising Expense
220 Unearned Revenue 520 Taxes and Licenses
230 Utilities Payable 530 Salaries Expense
 240 Loan Payable 540 Utilities Expense
250 Interest Payable 550 Repairs and Maintenance Expense

 Start on the first journal entry dated June 1 and follow the steps on
posting.

GENERAL JOURNAL Page: 1

Particulars
Date (Account
4 Titles and GENERAL
Explanation) LEDGER PR Debit
7 Credit
6
Account
June Title:
1 Cash
Cash GL-100 Account No: 100
350,000
Date ItemShane, Capital
PR Debit Date Item
GL-300 PR Credit
350,000
5
June 1 Cash Investment GJ-1 350,000
To record the initial investment per 6
3
acknowledgement receipt dated June 1, 2020 7
1 5

4
3
2
GENERAL LEDGER
2
Account Title: Shane, Capital Account No: 300
Date Item PR Debit Date Item PR Credit
June 1 Initial investment GJ-1 350,000

1
Step 1: Copy the account title of first journal entry, the Cash and Shane, Capital
Step 2: Enter the account number based on the chart of accounts. The Cash is
coded as 100 and Shane, Capital as 300.
Step 3: Copy the date of the jounal, June 1, to the ledger under date column.
Step 4: Copy the explanation or make the explanation of the journal short when
you transfer to the ledger and enter under Item column of the ledger.
Step 5: Transfer the amount of debit and credit. Cash was debited in the journal
and it was posted on the left side or debit side of the ledger. Shane, Capital was
credited in the journal and it was posted on the right side or credit side of the
ledger.
Step 6: Place the page of the journal under the post-reference (PR), reference or
folio column of the ledger. Cash and Shane, Capital was located at page 1 of
the journal. Thus the PR code of the two accounts is GJ-1.
Step 7: In the journal, copy the account number of the account title in the ledger
to the post-reference(PR), reference or folio column of the journal. Cash was coded
as 100 while Shane, Capital as 300

We can also use “T-account” to illustrate the posting of the accounts. Here is how
the “T-account” will look like.

Cash Shane, Capital

Debit Credit Debit Credit

6/1 350,000 6/1 350,000

 Post the June 2 Journal Entry.

June 2 Taxes and Licenses Expense 520 2,320
Cash 100 2,320
To record business registration as follows:
Mayor’s Permit OR no. 0142 P750
 GENERAL LEDGER
Account Title: Taxes and Licenses Expense
GENERAL LEDGER Account No: 520
Date
Account Item
Title: Cash PR Debit Date Item PR No: Credit
Account 100
June
Date2 BusinessItem
permits & registration
PR GJ-1
Debit 2,320
Date Item PR Credit
June 1 Cash Investment GJ-1 350,000 June 2 Business permits & registration GJ-1 2,320

Using “T-account”

Taxes and Licenses Expense Cash

Debit Credit Debit Credit

6/2 2,100 6/1 350,0000 6/2 2,100

 The accoun title Taxes and Licenses Expense was debited in the journal, it
was also placed at the debit side of the ledger and the “T-account”. The Cash
was credited, so it was entered at the right side of the ledger and the “T-
account”. Notice that Cash was used again in June 2 journal entry. In this
case, post the amount of the account repeated in the same ledger under the
same account title. No need to make another new ledger or “T-account” for
cash.

Once we are done posting, the journal and the ledger will look like these.

GENERAL JOURNAL Page: 1

Particulars
Date (Account Titles and Explanation) PR Debit Credit
June 1 Cash GL-100 350,000
Shane, Capital GL-300 350,000
To record the initial investment per acknowledgement
receipt dated June 1, 2020

2 Taxes and licenses expense GL-520 2,100

Cash GL-100 2,100
To record business registration as follows:
Mayor’s Permit OR no. 0142 P 750
DTI Registration,OR no.0713 550
TIN Registration,OR no. 1038 800
Total P2,100

The General Journal

GENERAL JOURNAL Page: 1

Particulars
Date (Account Titles and Explanation) PR Debit Credit
June 5 Photography Equipment GL-160 85,000
Photography Supplies GL-130 8,000
Cash GL-100 93,000
 To record purchase of equipment and supplies,SI no. 097

6 Prepaid Rent GL-140 36,000

Cash GL-100 36,000
To record the advance payment on rent per OR no.029

10 Cash GL-100 1,500

Photography Supplies 1,500
To record the returned supplies

GENERAL JOURNAL Page: 2

Particulars
Date (Account Titles and Explanation) PR Debit Credit
June 15 Advertising expense GL-510 4,800
Accounts payable GL-200 4,800
To record unpaid advertisement per SOA no. 10926

18 Cash GL-100 60,000

Notes Receivable GL-120 25,000
Service Revenue GL-400 85,000
To record the revenue per OR no. 001

24 Cash GL-100 72,000

Service Revenue GL-400 72,000
To record the service rendered per OR no. 002

25 Utilities Expense GL-540 2,300

Utilities payable GL-230 2,300
To record the unpaid utilities per billing reference no.2021

30 Salaries Expense GL-530 4,000

Cash GL-100 4,000
To record the salaries of employee

30 Accounts Payable GL-200 4,800

Cash GL-100 4,800
To record the payment of obligation

The General Ledger

GENERAL LEDGER
Account Title: Cash Account No: 100
Date Item PR Debit Date Item PR Credit
June 1 Cash Investment GJ-1 350,000 Jun2 Business permits & registration GJ-1 2,100
June10 Returned supplies GJ-1 1,500 Jun5 Purchase of supplies & equipment GJ-1 93,000
June18 Service rendered GJ-2 60,000 Jun6 Advance payment of rent GJ-1 36,000
June24 Service rendered GJ-2 72,000 Jun30 Payment of salary GJ-2 4,000
- Jun30 Payment of obligation GJ-2 4,800
-
Total Debit 483,500 Total Credit 139,900
Debit balance 343,600
483,500 483,500
 GENERAL LEDGER
Account Title: Notes Receivable Account No: 120
Date Item PR Debit Date Item PR Credit
June18 Service rendered with note GJ-2 25,000

GENERAL LEDGER
Account Title: Photography Supplies Account No: 130
Date Item PR Debit Date Item PR Credit
June 5 Purchase of supplies GJ-1 8,000 June10 Returned supplies GJ-1 1,500
Debit balance 6,500
8,000 8,000

GENERAL LEDGER
Account Title: Prepaid Rent Account No: 140
Date Item PR Debit Date Item PR Credit
June 6 Advance payment of rent GJ-1 36,000
GENERAL LEDGER
Account Title: Photography Equipment Account No: 160
Date Item PR Debit Date Item PR Credit
June 5 Purchase of equipment GJ-1 85,000

GENERAL LEDGER
Account Title: Accounts Payable Account No: 200
Date Item PR Debit Date Item PR Credit
Jun 30 Payment of obligation GJ-2 4,800 June15 Receipt of advertisement GJ-2 4,800

GENERAL LEDGER
Account Title: Utilities Payable Account No: 220
Date Item PR Debit Date Item PR Credit
June25 Receipt of electric bill GJ-1 2,300

GENERAL LEDGER
Account Title: Shane, Capital Account No: 300
Date Item PR Debit Date Item PR Credit
June 1 Initial investment GJ-1 350,000

GENERAL LEDGER
Account Title: Service Revenue Account No: 400
Date Item PR Debit Date Item PR Credit
June18 Service rendered GJ-2 85,000
June24 Service rendered GJ-2 72,000
Total credit 157,000

GENERAL LEDGER
Account Title: Advertising Expense Account No: 510
Date Item PR Debit Date Item PR Credit
June15 Receipt of advertisement GJ-2 4,800
 GENERAL LEDGER
Account Title: Utilities Expense Account No: 540
Date Item PR Debit Date Item PR Credit
June 25 Receipt of electric bill GJ-2 2,300

GENERAL LEDGER
Account Title: Salaries Expense Account No: 530
Date Item PR Debit Date Item PR Credit
June30 Payment of salary GJ-2 4,000

GENERAL LEDGER
Account Title: Taxes and Licenses Expense Account No: 520
Date Item PR Debit Date Item PR Credit
June2 Payment of business permit and registration GJ-2 2,100

So, it’s time to exit the third cycle of accounting process. Fasten your seatbelt and
be ready because right now, we are going to travel the fourth step in the accounting
cycle, Preparing the Trial Balance!

From the ledger, accounts with balances will be summarized in a trial balance.

A trial balance is a list of accounts and their balances at a given time. Its shows
the equality of the debits and credits. The accounts are listed in the same manner
they appear in the ledger.

Before the preparation of trial balance, you should be aware of the two
characteristics of account in the ledger, the closed account and open account.

A closed account is an account in the ledger where the total debit and total credit
are equal. This account title shall not be transferred anymore to the trial balance
because it has a zero balance. An example of closed account in Shane Photography
General ledger is as follows:
GENERAL LEDGER
Account Title: Accounts Payable Account No: 200
Date Item PR Debit Date Item PR Credit
Jun 30 Payment of obligation GJ-2 4,800 June15 Receipt of advertisement GJ-2 4,800

An open account is an account in the ledger where the total debit and total credit
are not equal and where the account has only debit or credit balance. This means
that the account has a remaining ending balance and shall be transferred to the
trial balance. Examples of open account in Shane Photography are as follows:

GENERAL LEDGER
Account Title: Photography Supplies Account No: 130
 Date Item PR Debit Date Item PR Credit
June 5 Purchase of supplies GJ-1 8,000 June10 Returned supplies GJ-1 1,500
Debit balance 6,500
8,000 8,000
GENERAL LEDGER
Account Title: Taxes and Licenses Expense Account No: 520
Date Item PR Debit Date Item PR Credit
June2 Payment of business permit and registration GJ-2 2,100

The following are the simple steps in preparing a trial balance:

1. Prepare the heading of the Trial Balance. The first line is the name of the
business. The second line is the name “Trial Balance. The third and last is
the date.
2. Transfer and list all open accounts and their balances.
3. Total the debit and credit columns.
4. Double rule the totals of the debit and the credit columns.

Let us now take a look at how the trial balance of Shane Photography will look like.
SHANE PHOTOGRAPHY
Trial Balance
June 30, 2020

Account Title Debit Credit

Cash P 343,600
Notes Receivable 25,000
Photography Supplies 6,500
Prepaid Rent 36,000
Photography Equipment 85,000
Utilities payable P 2,300
Shane, Capital 350,000
Service Revenue 157,000
Advertising Expense 4,800
Utilities Expense 2,300
Salaries Expense 4,000
Taxes and Licenses Expense _____2,100 ___________
P 509,300 P 509,300

Since trial balance only proves the equality of the debits and credits after posting, a
“balanced” trial balance does not guarantee accuracy of journalizing and posting.
Errors may still exist even in a “balanced” trial balance. Examples of these errors
are the following cases:
1. A transaction is completely omitted.
2. A correct journal entry is not posted.
3. A journal entry was posted twice.
4. Incorrect account titles are used in journalizing and posting.
5. Offsetting errors made in recording the amount of the transactions.

There are ways to locate and correct the errors in an unbalanced trial balance.
Some of these are the following:
 1. A difference of P1, P10, P100 or P1,000 could mean an error in addition or
subtraction.
2. A difference that is divisible by 2 could mean an error in posting on the
wrong side of the account. When debit balance is transferred to the credit
column of the trial balance
3. A difference that is divisible by 9 could mean transposition error. When
13,000 is written as 31,000.
4. A difference that is neither divisible by 9 could mean an account balance has
been omitted from the trial balance.

What’s More

Activity 8-1. Where am I?

Part 1
Directions: Locate the following parts to the General Ledger:
Parts:
1. PR 5. Item 9. Account No.
2. Date 6. Credit 10. Account Title
3. Item 7. Date
4. PR 8. Debit

GENERAL LEDGER

Part 2
Directions: Locate the following parts of the T-account:
Parts:
1. Credit
2. Debit
3. Account Title

Part 3
Directions: Arrange the following parts of the Trial Balance in order and position
the accounts in their normal balances:
Parts:
1. Credit 11. Notes Payable P10,000
2. Debit 12. Notes Receivable P26,000
3. Trial Balance 13. Owner, Capital P210,000
4. Account Title 14. Owner, Drawings P10,000
5. December 31, 2020 15. Rent Expense P10,000
6. ABC SERVICES 16. Salaries Expense P 16,000
7. Total Debits and Credits P377,700 17. Service Revenue P117,700
8. Accounts Payable P40,000 18. Supplies P10,500
9. Cash P200,000 19. Supplies Expense P3,500
10.Furniture and Fixtures P100,000 20.Taxes and Licenses P1,700
 ________________________
________________________
________________________

____________ ____________ ____________

______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
____________ _____________

What I Have Learned

Activity 8-2. You Made Me Complete

Complete the statement to make it correct. Write the word or words on the space
provided.
1. _____ is the process of transferring information from the journal to the ledger.
2. _____ is the book of final entry.
3. The third step in the accounting cycle is the _____ phase of accounting.
4. In posting, you are task to transfer all accounts recorded in the ____________
5. and arrange the accounts according to its classification and account title to the
______.
6-10. The ledger should be arranged in the order in which accounts are presented
in the financial statements beginning with balance sheet accounts _____, _____ and
_____ followed by income statement accounts _____ and _____.
11._____ can be used as substitute for the ledger.
12. Enter the account number of the account title based on the code written in the
_______.
13. A _____ is a list of accounts and their balances at a given time.
14. A _____ is an account in the ledger where the total debit and total credit are
equal
15. An _____ is an account in the ledger where the total debit and total credit are
not equal and where the account has only debit or credit balance.

What I Can Do

Activity 8-3
The accounting staff of your mother is on leave. For a while, she instructed you to
continue the work of her staff by preparing the Trial Balance. The following are
shown in the T-accounts of your Mom’s business, M’s Auditing Services, for the
month of August 2020.

Cash Salaries Expense Equipment

8/1 100,000 8/5 7,500 8/15 15,000 8/1 30,000
8/15 80,000 8/20 25,000 8/10 50,000
8/25 3,700
8/30 15,000
Utilities Expense Office Supplies Furniture & Fixtures
8/25 3,700 8/5 7,500 8/1 20,000

M’s, Capital Professional Fees Accounts Payable

8/1 150,000 8/15 80,000 8/20 25,000 8/10 50,000

Assessment

Activity 8-4
Test 1: Items 1-7
Directions: Arrange the following steps in posting the transactions in chronological
order, beginning with the first step:
A. Enter the number of the account in the PR column of the journal.
B. Enter the date
C. Place the page of the journal in the PR column of the ledger
D. Make a short explanation under Item column
E. Enter the debit or credit amount
F. Place the account number
G. Copy the account title of the first journal entry from the journal to the
ledger

Test 2: Items 8-10 (Steps in Preparing Trial Balance)

Directions: Arrange the following steps in preparing trial balance.
A. Total the debit and credit columns
B. List all open accounts and their balances
C. Prepare the heading

Test 3: Posting to Ledger and Preparing Trial Balance

The General Journal Page 1 of Flawless Skin Care shows the following entries:

October 2 - Cash 300,000

Dr. Quack, Capital 300,000
To record the initial investment
3 - Equipment 150,000
 Accounts Payable 150,000
To record purchase of equipment on account.

9 - Supplies 32,000
Accounts Payable 32,000
To record purchase of supplies on account.

15 - Cash 80,000
Professional Fees 80,000
To record the service rendered.

17 - Dr. Quack, Drawings 25,000

Cash 25,000
To record the personal drawing of the owner

31 - Salaries Expense 17,000

Cash 17,000
To record payment of salaries.

Flawless Skin Care uses the following chart of accounts:

1000 Cash 3000 Dr. Quack, Capital
1100 Accounts Receivable 3100 Dr. Quack, Drawings
1200 Supplies 4000 Professional Fees
1300 Equipment 5000 Salaries Expense
1400 Furniture & Fixtures 5100 Rent Expense
2000 Accounts Payable 5200 Utilities Expense
2100 Notes Payable 5300 Supplies Expense

Required:
1. Post the journal entries to the Ledger.
2. Prepare the Trial Balance for the month of October 2020.

Additional Activities

Activity 8-5 The T-account

The following journal entries are taken in the General Journal of Wellness Co.

September 2 – Cash 300,000

Mr. Abs, Capital 300,000
 5 – Taxes and Licenses 2,200
Cash 2,200

7 – Prepaid Rent 30,000

Cash 30,000

8 – Cash 100,000
Loan Payable 100,000

10- Equipment 310,000

Furniture and Fixtures 28,000
Cash 238,000
Accounts Payable 100,000

15 – Cash 52,000
Service Revenue 52,000

18 – Accounts Payable 25,000

Cash 25,000

20 – Utilities Expense 4,500

Utilities Payable 4,500

25 – Cash 10,000
Accounts Receivable 15,000
Service Revenue 25,000

30- Salaries Expense 30,000

Cash 30,000

Required:
1. Post the journal entries to the T-account.
2. Prepare the trial balance.