2. After you have prepared all of the necessary entries in Step #1, post these entries to the general ledger found on pages 9-14. In the general ledger the first two columns are used to post the applicable debit or credit amount from the journal entry. The second debit and credit columns are balance columns that show the balance of the applicable account. In the post ref (reference) column of the general ledger, use the journal entry number as the reference for each entry. J1 for the first entry, J2 for the second entry and so on. Explanations are not required in the general ledger, but are recommend for customer name or vendor name for Accounts Receivable and Accounts Payable accounts, respectively.

3.After all of the account balances have been determined, enter the balance of each account in the general ledger to the debit or credit unadjusted trial balance columns of the worksheet..

4. Total the unadjusted trial balance columns of the worksheet. Total debits must equal total credits. The purpose of the trial balance is to prove the equality of debits and credits. If total debits do not equal total credits, you are out of balance and must find the difference. The following are possible explanations to determine errors:

Only posting a portion of the journal entry; look for a transaction that includes the amount of your difference and verify that both the debit & credit amounts have been posted to the correct accounts.

A debit may have been posted as a credit or vice versa; divide the difference by 2 and look at any transaction that includes that amount to verify that debits & credits are posted correctly.

Double-check the math computations.

Rocky Ram, Inc. December 2020 Transactions

1 On December 1, Rocky Ram, Inc. received $17,000 from Kanga Roo Inc. for partial payment of account. (First entry journalized and posted for you.)

2 On December 1, Rocky Ram, Inc. received $6,000 in advance for renting office space to Bullwinkle, Inc. for the December 1, 2020 through February 28, 2021.

3 On December 6, Rocky Ram, Inc. issued checks to Acne Corporation for $12,000, Bow & Arrow, Inc. for $8,000, and Boa Construction Inc. for $15,000 in payment on accounts.

4 On December 10, the company purchased supplies in the amount of $4,000 on account from Boa Construction Inc. (FOB Shipping Point, terms n/10, n/30), order shipped in December.

5 On December 10, Rocky Ram, Inc. received a check in the amount of $30,000 from Poodle & Co. in payment of account.

6 On December 13, Rocky Ram, Inc. made a sale in the amount of $77,000 to Poodle & Co (terms 2/10, n/30). The cost of the inventory sold was $36,000.

7 On December 17, Board of Directors declared $8,200 in dividends to be paid in January.

8 On December 20, the company paid employees $31,000 for wages earned during the period from December 1 through December 15, 2020.

9 On December 23, received full payment from Poodle & Co. for sale made December 13 (J6), within the discount period.

10 On December 23, Rocky Ram, Inc. made a sale in the amount of $90,000 to Bulldog Inc. (terms 2/10, n/30). The cost of the inventory sold was $28,000.

11 On December 28, Bulldog Inc. returned goods purchased on December 25, in the amount of $14,000. The cost of inventory was $9,000.

12 On December 28, Rocky Ram, Inc. ordered inventory from Bow & Arrow, Inc. in the amount of $50,000 (FOB Destination, terms 2/10, n/30), inventory is expected to arrive sometime in January.

13 On December 31, the company purchased office equipment costing $60,000. They paid $15,000 down on the equipment and signed a promissory note for the remaining balance. The note is due March 31, 2021.

14 On December 31, Rocky Ram, Inc. paid utility bills totaling $2,020 for utilities used during the month of December.