Question 1

The balance ledger form always shows the current balance of an account.

Accepted Answer

A) True 
 B)False

Question 2

If a journal entry that contains an error has already been posted,

Accepted Answer

A) the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it. 
B) the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger. 
C) the incorrect items should be erased and replaced with the correct data. 
D) a correcting entry should be journalized and posted.

Question 3

Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Accepted Answer

A) Debit Accounts Receivable $1,350; credit Fees Income $1,350 
B) Debit Fees Income $1,350; credit Cash $1,350 
C) Debit Accounts Receivable $1,350; credit Cash $1,350 
D) Debit Cash $1,350; credit Accounts Receivable $1,350

Question 4

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include:

Accepted Answer

A) a debit to Equipment for $100 and a credit to Accounts Payable for $400. 
B) a debit to Equipment for $100 and a credit to Cash for $100. 
C) a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for
$400. 
D) debit to Equipment for $500 and a credit to Cash for $500.

Question 5

Indicate how each of the following would be reflected in the journal entry required to record the effects described by using debit or credit to indicate the increase or decrease in each affected account.

Accepted Answer

The answer of Indicate how each of the following would...

Question 6

Lourdes Yabar opened a computer repair business on May 1, 2019. During the first month of operations, the firm had the following transactions. Record these transactions on page 1 of the general journal. Omit the descriptions. Set up a Cash general ledger account and post the appropriate transactions to this account, account 101.

19	Issued Check 104 for $250 to pay for a newspaper advertisement
26	Issued Check 105 for $350 to pay the monthly electric bill
28	Performed services for $600 cash
29	Received $400 on account from credit customers
29	Issued Check 106 for $150 to pay the monthly telephone bill
31	Issued Check 107 for $7,000 to pay a creditor
31	Issued Check 108 for $2,500 to Lourdes Yabar for personal expenses

Accepted Answer

The answer of Lourdes Yabar opened a computer repair business...

Question 7

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

Accepted Answer

A) source documents 
B) accounts 
C) debits 
D) ledgers

Question 8

The process of transferring the data from the journal to the general ledger is called:

Accepted Answer

A) footing 
B) journalizing 
C) posting 
D) transposing

Question 9

Maria Sanchez operates a typing service. During the month of July, the first month of operations, the firm had the following transactions. Record these transactions on page 2 of a general journal. Omit the descriptions
July
4	Provided services for $3,550 on credit
5	Purchased a new computer for $1,250, issued a check for a $500 down
Purchased a new computer for $1,250, issued a check for a $500 down payment, with the balance payable in 30 days
7	Issued a check in the amount of $1,800 to pay a creditor on account
8	Collected $1,000 in cash from credit customers
9	Issued check for $3,000 for the August and September rent

Accepted Answer

The answer of Maria Sanchez operates a typing service. During...

Question 10

Match between columns
                        Premises:  A financial record for entering all types of business transactions; a record of original entry
 Transferring data from a journal to a ledger
 A series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information
 A permanent, classified record of all accounts used in a firm's operation; a record of final entry
 Recording transactions in a journal
 A ledger account form that shows the balance of the account after each entry is posted
 A journal entry with more than one debit or credit
 Organized in the order in which the events occur
 A chain of references that makes it possible to trace information, locate errors, and prevent fraud
 A journal entry made to correct an erroneous entry
 The record of original entry
 The record of final entry

Accepted Answer

The Answer of Accounting cycle and Audit trail and Balance is...

Question 11

When an entry is made in the general journal,

Accepted Answer

A) the accounts to be credited should be indented. 
B) liability, capital, and revenue accounts should be indented. 
C) asset accounts should be indented. 
D) the first account entered should be indented.

Question 12

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 Discovered that a purchase of office equipment for $1,000 cash was recorded as a debit to Shop Equipment and a credit to Cash
10 Discovered that a check for $2,500 to the owner, Hank Rudolph, to pay one month's utilities on his personal apartment was recorded as a debit to Utilities Expense and a credit to Cash
15 Discovered that a receipt of $30,000 cash from a customer for services performed was recorded as a debit to Cash and a credit to Accounts Receivable
20 Discovered that $3,000 for this month's rent was recorded as a debit to Cash and a credit to Prepaid Rent

Accepted Answer

The answer of The following errors in recording the transactions...

Question 13

When a transaction is entered in a general journal, the first account title is indented about half an inch from the left margin of the Description column.

Accepted Answer

A) True 
 B)False

Question 14

If an error is discovered before the entry is posted, the incorrect amount can be erased and the correct amount recorded.

Accepted Answer

A) True 
 B)False

Question 15

Determine the accounts and amounts to be debited and credited for the following transactions for Monroe's Auto Repair.
A. Marilyn Monroe invested $50,000 in cash to start the firm
B. Issued check for $4,000 to pay the rent for current month
C. Purchased an automobile that will be used to visit clients; issued check for $32,500 in full payment
D. Purchased supplies for $800; paid immediately by check
E. Purchased office equipment for $18,500 on credit from Denton, Inc.; received invoice, payable in 30 days
F. Performed services for $2,580 in cash
G. Returned damaged supplies for a cash refund of $50
H. Issued check for $15,600 to Denton, Inc., as payment on account
I. Paid $120 for monthly telephone bill by check
J. Withdrew $500 in cash for personal expenses

Accepted Answer

The answer of Determine the accounts and amounts to be...

Question 16

If a journal entry that contains an error has already been posted, a correcting entry should be journalized and posted.

Accepted Answer

A) True 
 B)False

Question 17

A ledger is sometimes referred to as a record of original entry.

Accepted Answer

A) True 
 B)False

Question 18

The journal entry to record the receipt of cash from credit clients would include:

Accepted Answer

A) a debit to Cash and a credit to Fees Income. 
B) a debit to Cash and a credit to Accounts Receivable. 
C) a debit to Accounts Receivable and a credit to Cash. 
D) a debit to Fees Income and a credit to Cash.

Question 19

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Accepted Answer

A) Debit Shop Equipment $4,500; credit Office Equipment $4,500 
B) Debit Cash $4,500; credit Shop Equipment $4,500 
C) Debit Office Equipment $4,500; credit Cash $4,500 
D) Debit Office Equipment $4,500; credit Shop Equipment $4,500

Question 20

Which of the following statements is CORRECT?

Accepted Answer

A) Accounts being debited should always follow the accounts being credited in a compound entry. 
B) Compound entries affect more than one debit and/or more than one credit. 
C) All transactions require compound entries. 
D) Compound entries include only debits.

Exam 4: The General Journal and the General Ledger

The balance ledger form always shows the current balance of an account.

If a journal entry that contains an error has already been posted,

Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include:

Indicate how each of the following would be reflected in the journal entry required to record the effects described by using debit or credit to indicate the increase or decrease in each affected account.

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

The process of transferring the data from the journal to the general ledger is called:

Match the description with the accounting terms.

When an entry is made in the general journal,

When a transaction is entered in a general journal, the first account title is indented about half an inch from the left margin of the Description column.

If an error is discovered before the entry is posted, the incorrect amount can be erased and the correct amount recorded.

If a journal entry that contains an error has already been posted, a correcting entry should be journalized and posted.

A ledger is sometimes referred to as a record of original entry.

The journal entry to record the receipt of cash from credit clients would include:

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Which of the following statements is CORRECT?