Question 1

If a transaction cannot be recorded in a special journal it indicates that the company should adopt an electronic accounting system.

Accepted Answer

A) True 
 B)False  False

Question 2

The "Other Accounts" column in a cash receipts journal is also referred to as the

Accepted Answer

A)  miscellaneous column. 
B)  excess column. 
C)  sundry accounts column. 
D)  compound-entry column. 
A)  miscellaneous column. 
B)  excess column. 
C)  sundry accounts column. 
D)  compound-entry column. C

Question 3

Match between columns
                        Premises:  Par value per common share    &emsp;   Cash dividend
Book value per share  &emsp;  Stock dividend
Total retained earnings  &emsp;  Stock split
Total stockholders' equity  &emsp;  Prior period adjustment increases last year's net income
Earnings per common share  &emsp;  Restriction of retained earnings
Total retained earnings  &emsp;  Change in accounting principle
Number of common shares outstanding  &emsp;  Stock dividend
Total retained earnings  &emsp;  Cash dividend
Par value per common share  &emsp;  Stock dividend
Total paid-in capital  &emsp;  Stock dividend

Accepted Answer

The Answer of Item increases and Item decreases and Item is...

Question 4

Postings to the control accounts in the general ledger are made

Accepted Answer

A)  annually. 
B)  daily. 
C)  monthly. 
D)  weekly. 
A)  annually. 
B)  daily. 
C)  monthly. 
D)  weekly.

Question 5

Entries in a sales journal

Accepted Answer

A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit. 
A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit.

Question 6

After Picard Company had completed all posting for the month of December the sum of the balances in the following accounts payable subsidiary ledger did not agree with the balance of the control account in the general ledger. $\begin{array}{ll}
\text { Name } & \text { Ryker's } \
\text { Address } & \text { 286 Buck Avenue }
\end{array}$

$\begin{array}{lccccc}
\hline \text { Date} & \text { Item } & \text { Post. Ref. } & \text { Debit } & \text { Credit } & \text { Balance } \
\hline \text { Dec. } 2 && \mathrm{P} 25 & & 2,400 & 2,400 \

\end{array}$

$\begin{array}{ll}
\text { Name } & \text { Geordie Company } \
\text { Address } & \text { 818 Western Avenue }
\end{array}$

$\begin{array}{lccccc}
\hline \text { Date } & \text { Item } & \text { Post. Ref. } & \text { Debit } & \text { Credit } & \text { Balance } \
\hline \text { Dec. } 1 & \text { Balance } & & & & 7,600 \
 10 & & \mathrm{CP} 23 & 7,600 & & - \
 20 & & \text { P32 } & & 3,300 & 3,300 \
 29 & & J 15 & 800 & & 4,100 \

\end{array}$
   The balance in the Accounts Payable control account of $36580 has been verified as correct. Also assume that the journals references in the Post Ref. columns of the accounts payable subsidiary ledger have been verified as correct.
Instructions
Determine the errors in the preceding accounts payable subsidiary accounts and prepare a corrected schedule of accounts payable.

Accepted Answer

IDENTIFICATION OF ERRORS:
<u>Geordie Com

Question 7

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Accepted Answer

A) True 
 B)False

Question 8

Spencer Company uses four special journals (cash receipts cash payments sales and purchases journal) in addition to a general journal. On November 1 2016 the control accounts in the general ledger had the following balances: Cash $15000 Accounts Receivable $180000 and Accounts Payable $40000. Selected information on the final line of the special journals for the month of November is presented below:   Additional Data:
The Sales Journal totaled $44000. A customer returned merchandise for credit for $640 and Spencer Company returned store supplies to a supplier for credit for $500.
Instructions
(a) Determine the missing amounts in the special journals.
(b) Determine the balances in the general ledger accounts (Cash Accounts Receivable and Accounts Payable) at the end of November.

Accepted Answer

The answer of Spencer Company uses four special journals (cash...

Question 9

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a special journal?

Accepted Answer

A)  Sales journal 
B)  Purchases journal 
C)  General journal 
D)  Cash receipts journal 
A)  Sales journal 
B)  Purchases journal 
C)  General journal 
D)  Cash receipts journal

Question 11

An entry in the "Other Accounts" column in a cash receipts journal could occur when the credit is to

Accepted Answer

A)  Owner's Drawings. 
B)  Accounts Payable. 
C)  Owner's Capital. 
D)  Inventory. 
A)  Owner's Drawings. 
B)  Accounts Payable. 
C)  Owner's Capital. 
D)  Inventory.

Question 12

When the totals of the sales journal are posted at the end of the month there will be credits to

Accepted Answer

A)  Sales Revenue and Inventory and debits to Accounts Receivable and Cost of Goods Sold. 
B)  Accounts Receivable and Cost of Goods Sold and debits to Sales Revenue and Inventory. 
C)  Sales Revenue and debits to each individual customer account. 
D)  the Sales Revenue account only and no debits. 
A)  Sales Revenue and Inventory and debits to Accounts Receivable and Cost of Goods Sold. 
B)  Accounts Receivable and Cost of Goods Sold and debits to Sales Revenue and Inventory. 
C)  Sales Revenue and debits to each individual customer account. 
D)  the Sales Revenue account only and no debits.

Question 13

Adjusting entries are recorded

Accepted Answer

A)  only on the worksheet. 
B)  only in the general ledger. 
C)  in the general journal. 
D)  in the special journals. 
A)  only on the worksheet. 
B)  only in the general ledger. 
C)  in the general journal. 
D)  in the special journals.

Question 14

The one characteristic that all entries recorded in a multi-column purchases journal have in common is a

Accepted Answer

A)  credit to the Cash account. 
B)  debit to the Cash account. 
C)  debit to the Accounts Payable account. 
D)  credit to the Accounts Payable account. 
A)  credit to the Cash account. 
B)  debit to the Cash account. 
C)  debit to the Accounts Payable account. 
D)  credit to the Accounts Payable account.

Question 15

Reno's Wholesale uses a sales journal. An entry in this journal represents a

Accepted Answer

A)  debit to Cash; credit to Sales Revenue. 
B)  debit to Accounts Receivable; credit to Sales Revenue. 
C)  debit to Sales Discounts; credit to Cash. 
D)  debit to Accounts Payable; credit to Sales Returns and Allowances. 
A)  debit to Cash; credit to Sales Revenue. 
B)  debit to Accounts Receivable; credit to Sales Revenue. 
C)  debit to Sales Discounts; credit to Cash. 
D)  debit to Accounts Payable; credit to Sales Returns and Allowances.

Question 16

Gaston Company began business on October 1. The partial sales journal as it appeared at the end of the month follows:   
1. Open general ledger T-accounts for Accounts Receivable (No. 112) and Sales Revenue (No. 401) and an accounts receivable subsidiary T-account ledger with an account for each customer. Make the appropriate postings from the sales journal. Fill in the appropriate posting references in the sales journal above.
2. Prove the accounts receivable subsidiary ledger by preparing a schedule of accounts receivable.

Accepted Answer

11eb1392_1

Question 17

The accounts receivable ______________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Accepted Answer

subsidiary

Question 18

If merchandise from a cash sale is returned by a customer for a refund the sales return is recorded in the

Accepted Answer

A)  general journal. 
B)  cash receipts journal. 
C)  cash payments journal. 
D)  sales journal. 
A)  general journal. 
B)  cash receipts journal. 
C)  cash payments journal. 
D)  sales journal.

Question 19

Manheim Company uses both special journals and a general journal. The company accountant made the following errors during July.
1. Incorrectly added the credit entries in a customer's account in the accounts receivable subsidiary ledger. The total was listed as $2300; it should have been $2570.
2. A remittance of $300 from Jim Beyheim was correctly recorded in the cash receipts journal but the amount was posted incorrectly to the account of customer James Baylor in the subsidiary ledger.
3. A purchase of merchandise on account from Henry Company for $2500 was incorrectly entered in the purchases journal at $25000.
4. In the sales journal the entries were incorrectly added for the month. The monthly total was listed as $29240; it should have been $29420.
Instructions
Indicate how each of the above errors might be discovered.

Accepted Answer

1. The subsidiary ledger will not agree

Question 20

Indicate in which journal each of the following transactions is recorded.

Accepted Answer

The answer of Indicate in which journal each of the...

Exam 7: Accounting Information Systems

If a transaction cannot be recorded in a special journal it indicates that the company should adopt an electronic accounting system.

The "Other Accounts" column in a cash receipts journal is also referred to as the

Postings to the control accounts in the general ledger are made

Entries in a sales journal

Using special journals can save time in posting because column totals are often posted rather than individual entries.

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Which of the following is not a special journal?

An entry in the "Other Accounts" column in a cash receipts journal could occur when the credit is to

When the totals of the sales journal are posted at the end of the month there will be credits to

Adjusting entries are recorded

The one characteristic that all entries recorded in a multi-column purchases journal have in common is a

Reno's Wholesale uses a sales journal. An entry in this journal represents a

The accounts receivable ______________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

If merchandise from a cash sale is returned by a customer for a refund the sales return is recorded in the

Indicate in which journal each of the following transactions is recorded.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

The accounts receivable provides detailed information about customer accounts which is summarized in one account in the general ledger.