Exam 4: The General Journal and the General Ledger

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

The accounts with identification letters for Smart Delivery Services are listed below. During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example. F. Issued check for \ 750 for current month's utilities G. The owner withdrew \ 1,500 cash for personal use H. Received \ 900 on account from credit clients

If a transaction is properly analyzed and recorded,

The accounts on the Trial Balance are always listed in the following order:

A permanent, classified record of all accounts used in a firm's operation is called a(n)________.

A(n)______ entry is recorded when there is an error in data that has been journalized and posted.

Posting references are part of the audit trail.

A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:

The process of recording transactions in a journal is referred to as ________.

On July 3, the ABC Company received $865 in cash on account from customers. The correct journal entry to record this transaction is:

Posting references provide a useful cross-reference when entries must be traced and verified.

Determine the accounts and amounts to be debited and credited for the following transactions for Madison's Clock Repair. A. Purchased new equipment for $3,400 by issuing a check for $1,400 as a down payment with the balance due in 30 days. B. Returned damaged supplies and received a $80 cash refund. C. Purchased supplies for $300 on account. D. Provided services for $8,600 on credit. E. Issued a check for $700 to pay a creditor on account. F. Issued checks for $3,800 to pay the employees their monthly salaries. G. Issued a check for $180 to pay the monthly telephone bill

The accounts with identification letters for Orly Delivery Services are listed below. Letter Account Title Letter Account Title A Cash I Orly, Drawing B Accounts Receivable J Delivery Fee Income C Supplies Advertising Expense D Prepaid Rent L Equipment Repairs Expense E Delivery Equipment M Rent Expense F Office Equipment N Salaries Expense G Accounts Payable O Utilities Expense H Orly, Capital During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example. Debit Credit Transaction Letter Amount Letter Amount A. The owner invested \ 25,000 cash in the business A \ 25,000 H \ 25,000 B. Purchased delivery equipment on account \ 16,500. C. Performed delivery services for \ 6,200 cash D. Issued check for \ 7,200 to pay the rent for six months E. Issued check for \ 360 to purchase supplies F. Issued check for \ 4,000 in partial payment of the delivery equipment purchased in 'B' above G. Purchased an advertisement space in the local newspaper for \ 600 for one month

A ________ is referred to as a record of original entry.

A description should accompany each entry made in the ________.

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance. The first row has been completed for reference.

The account numbers from the ledger are recorded in the Posting Reference column of the general journal:

On December 10, Yummy Catering purchased a new oven costing $10,000. They issued a check a check for $2,000 and promised to pay the balance in 30 days. The journal entry to record this transaction is: