The Process of Posting Journal Entries to General Ledger Accounts (Appendix)

On June 1, Campbell Corporation purchased ten acres of land in exchange for a promissory note in the amount of $50,000. Using the formats shown in Example 3-6, prepare the journal entry to record this transaction in a general journal and post it to the appropriate general ledger accounts. The entry will be recorded on page 7 of the general journal. Use whatever account numbers you like in the general ledger. Assume that none of the accounts to be debited or credited currently contain a balance.

If at a later date you wanted to review this transaction, would you examine the general ledger or the general journal? Explain your answer.

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