Page 86 - Accounting Principles (A Business Perspective)

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JENKS COMPANY
General Journal
Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 Jan. 1(B) Cash (+A) (C)100 1 0 0 0 0 (A)
Capital Stock (+SE) 300 1 0 0 0 0 (D)
Stockholders invested $10,000 cash in the business.

5 Cash (+A) 100 5 0 0 0
Notes Payable (+L) 201 5 0 0 0
Borrowed $5,000 from the bank on a note.

:- General Ledger Cash Account No 100(C)

Explanation Post Debt Credit Balance
Ref.
2010 -Jan. (B)1 Stockholders investment G1 (A) 1 0 0 0 0 1 0 0 0 0 Dr
5 Bank loan G1 5 0 0 0 1 5 0 0 0 Dr

Notes Payable Account No. 201

Date Explanation Post Debt Credit Balance
Ref.
2010 Jan. 5 Borrowed cash G1 5 0 0 0 5 0 0 0 Cr

Capital Stock Account No. 300
Explanation Post Debt Credit Balance
Ref.
(B)1 Cash from stockholders G1 ( 1 0 0 0 0 1 0 0 0 0 Cr
2010 " D
Jan.
)

Exhibit 10: General journal and general ledger; posting and cross-indexing
Cross-indexing aids the tracing of any recorded transaction, either from general journal to general ledger or
from general ledger to general journal. Normally, they place cross-reference numbers in the Posting Reference
column of the general journal when the entry is posted. If this practice is followed, the cross-reference numbers
indicate that the entry has been posted.

MICROTRAIN COMPANY
General Journal
Page1
Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 Nov. 28 Cash (+A) 100* 5 0 0 0 0
Capital Stock (+SE) 300 5 0 0 0 0
Stockholders invested $50,000 cash in the business.

Accounting Principles: A Business Perspective 87 A Global Text