Here we have your general journal. This general journal should look very familiar to the one you created in week 1. The only difference is the posting reference column. Once we complete the posting cycle, you will see account numbers in this posting reference column. Here is your general ledger, notice, we are using T-accounts as our ledger accounts. Not only on the top of the T-account do we have the account name, but now we also have the account number, which we spoke about in the chart of accounts section earlier. We need these account numbers in part of the posting process. Let's take a look at our first transaction. We had a debit to cash for 25,000, a credit to common stock for 25,000. Now we post that 25,000 as a debit to the cash ledger and we post the credit to common stock in the common stock ledger account. Then we close the loop by including the account number for cash in the posting reference column right across from cash and also we include the common stock account as a posting reference in the general journal. Our second transaction is a debit to office equipment for 17,000 and a credit to cash for 17,000. Here we will post that 17,000 office equipment into the office equipment ledger account. Same thing for the cash account. We have it as a credit for 17,000, we will credit the cash ledger account for 17,000. We will close the posting loop by inputting the cash account in the posting reference column in the general journal, as well as the office equipment account number 122 in the posting reference column. Let's take a look at our third transaction. We have a debit to supplies and a credit to accounts payable. Now, we will post those to the individual ledger accounts as a debit to supplies, a credit to accounts payable, then we will include the posting references in the general journal for supplies, account 117, and accounts payable 201. We will do that for the next several transactions. A debit to accounts payable, a credit to cash. Now we have the debit to the accounts payable ledger and a credit to the cash ledger, and then we will include the posting references for those two accounts in the posting reference column within the general journal. Our next transaction, debit to cash, credit to service revenue; we will post those into the individual ledger accounts, then include the account numbers as the posting reference in the general journal. Our next account, debit accounts receivable for 3,500, credit service revenue for 3,500; we will post those into the individual ledger accounts as seen, and then we will close the loop and have the posting references as the account numbers 111 for accounts receivable and 401 for service revenue. Same thing for our next transaction. Debit rent expense, credit, cash. Now we will post those to the ledger accounts, rent expense, and cash, and then include the posting references in the general journal. Next, we have our debit to cash, credit to accounts receivable for 1,500. Notice we post in the individual ledger accounts, cash, and accounts receivable, and then we will close the posting loop by including those account numbers as posting references in the general journal. Next, debit to salaries and wages expense, credit to cash. Again, notice here we have them posted into the ledger accounts. So we debit salaries and wages expense for 2,250 and credit cash for 2,250 and then include the posting references in the general journal. Notice salaries and wages expense account 511 and the cash account 101. Then our final entry, we have a debit to dividends for 1,000, a credit to cash. Now we have posted into the ledger accounts. Notice dividends, debit for 1,000, a credit to cash for 1,000. Then we include the posting reference account number 305 for dividends and 101 for cash. Now take a look, now we have the completed general ledger for our 10 transactions. We have all of the accounts and we included the ending balances. Then here we're going to finish off with the general journal. Notice the posting reference column includes the account numbers to show that these accounts and these entries have been posted. Now you're going to be able to do a similar activity on your own. Thank you so much for joining me for week 2. I look forward to seeing you in week 3 when we will talk about the trial balance.
