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 first row has been completed for reference.

Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place are called

The owner of the business would like to see the debit and credit entry for a specific transaction, he would look in

The Accounts Payable account has a $3,000 credit balance. An entry for the payment of $1,000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is

The following errors in recording the transactions for December were discovered in the general journal the next month after the data had been posted to the ledger. Record the necessary correcting entries on page 12 of a general journal. Omit the descriptions. Dec. 5 $\quad$ Discovered that a purchase of office equipment for $\$ 1,000$ cash was $\quad$$\quad$ recorded as a debit to Shop Equipment and a credit to Cash $\quad$ 10 $\quad$ Discovered that a check for $\$ 2,500$ to the owner, Hank Rudolph, to $\quad$$\quad$$\quad$ pay one month's utilities on his personal apartment was recorded as a debit to Utilities Expense and a credit to Cash $\quad$ 15 $\quad$ Discovered that a receipt of $\$ 30,000$ cash from a customer for $\quad$$\quad$$\quad$ services performed was recorded as a debit to Cash and a credit to Accounts Receivable $\quad$ 20 $\quad$ Discovered that $\$ 3,000$ for this month's rent was recorded as a $\quad$$\quad$$\quad$ debit to Cash and a credit to Prepaid Rent