Supervisory Question:

Steps three and four involve making individual journal entries for each transaction, then posting all new journal entries to the general ledger. Making individual journal entries relies on the raw transaction data gathered in the previous steps.

After posting journal entries for a specific period of time, such as a day or a week, accountants transfer all journal entries to the general ledger – a running total of account balances. This step relies directly on the journal entries made in the previous step.