🎯 Practical Case: Recording & Posting
🎯 Learning Objectives
- Complete the full accounting recording cycle from source documents through trial balance
- Journalize multiple business transactions correctly
- Post journal entries to ledger T-accounts with accurate balances
- Prepare a trial balance that verifies double-entry accuracy
- Identify and correct common recording errors
- Understand the connection between journal, ledger, and financial statements
📚 Background & Principles
The recording cycle is systematic and builds on itself. Each step feeds into the next: Source Documents → Journal → Ledger → Trial Balance → Financial Statements.
Your Mission
You are the bookkeeper for "DesignPro Studio". Journalize transactions, post to T-accounts, and prepare a trial balance. Master the complete recording process!
Step 1: Journalize the Transactions
For each transaction, write the journal entry. Remember: Debit = Left, Credit = Right.
Transaction 1: March 1
Owner invested $25,000 cash in the business.
| Account | Debit | Credit |
|---|---|---|
Transaction 2: March 5
Purchased design software (equipment) for $5,000 on account.
| Account | Debit | Credit |
|---|---|---|
Step 2: Post to T-Accounts
Transfer the journal entries to the appropriate T-accounts.
Step 3: Prepare Trial Balance
List all accounts and their balances. Verify that Debits = Credits.
DESIGNPRO STUDIO
Trial Balance
March 31, 2025
| Account | Debit | Credit |
|---|---|---|
| Cash | ||
| Equipment | ||
| Accounts Payable | ||
| Common Stock | ||
| Totals | $0 | $0 |
🎉 Excellent Work!
You've mastered the recording process: Journal → Ledger → Trial Balance. This is the backbone of accounting!