Question 1

When a transaction is entered in the general journal, the account to be _________________ is always recorded first in the Description column.

Accepted Answer

debited

Question 2

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

Accepted Answer

A)   debit Cash, $865; credit Income from Services, $865
B)   debit Cash, $865; credit Accounts Payable, $865
C)   debit Accounts Receivable, $865; credit Cash, $865
D)   debit Cash, $865; credit Accounts Receivable, $865 D

Question 3

Notations that allow transactions to be quickly and easily traced from the journal to the ledger or from the ledger to the journal are called ____________________ references.

Accepted Answer

posting

Question 4

Which of the following statements is correct?

Accepted Answer

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

Question 5

Antonio Baldez operates a delivery service. During the month of April, the firm had the following transactions. Record these transactions on page 5 of a general journal. Omit the descriptions.

Accepted Answer

The answer of Antonio Baldez operates a delivery service. During...

Question 6

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 7

When an entry is made in the general journal,

Accepted Answer

A)   assets should be listed first.
B)   accounts to be debited should be listed first.
C)   accounts to be increased should be listed first.
D)   accounts may be listed in any order.

Question 8

When an entry is made in the general journal,

Accepted Answer

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

Question 9

The journal entry to record the payment of a monthly utility bill would include

Accepted Answer

A)   a debit to Utilities Expense and a credit to Capital.
B)   a debit to Capital and a credit to Cash.
C)   a debit to Utilities Expense and a credit to Cash.
D)   a debit to Utilities Expense and a credit to Accounts Payable.

Question 10

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 11

The journal entry to record the performance of services for cash would include

Accepted Answer

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

Question 12

Posting is the ____________________ step in the accounting cycle.

Accepted Answer

The answer of Posting is the ____________________ step in the...

Question 13

Transactions are entered in the journal in chronological order.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:

Accepted Answer

A)   Debit Utilities Expense; Credit Accounts Payable
B)   Debit Cash; Credit Utilities Expense
C)   Debit Utilities Expense; Credit Cash
D)   Debit Accounts Payable; Credit Cash

Question 16

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include

Accepted Answer

A)   a debit to Sue Snow, Capital, and a credit to Cash.
B)   a debit to Utilities Expense and a credit to Cash.
C)   a debit to Sue Snow, Drawing and a credit to Cash.
D)   a debit to Sue Snow, Drawing and a credit to Utilities Expense.

Question 17

The journal entry to record the payment of salaries should include

Accepted Answer

A)   a debit to Salaries Expense and a credit to Cash.
B)   a debit to Capital and a credit to Cash.
C)   a debit to Cash and a credit to Salaries Expense.
D)   a debit to Salaries Expense and a credit to Accounts Payable.

Question 18

Posting references are part of the audit trail.

Accepted Answer

A) True 
 B)False

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

Question 20

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 5 of a general journal. Omit the descriptions.

Accepted Answer

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

Exam 4: The General Journal and the General Ledger

When a transaction is entered in the general journal, the account to be _________________ is always recorded first in the Description column.

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

Notations that allow transactions to be quickly and easily traced from the journal to the ledger or from the ledger to the journal are called ____________________ references.

Which of the following statements is correct?

Antonio Baldez operates a delivery service. During the month of April, the firm had the following transactions. Record these transactions on page 5 of a general journal. Omit the descriptions.

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.

When an entry is made in the general journal,

When an entry is made in the general journal,

The journal entry to record the payment of a monthly utility bill would include

The journal entry to record the performance of services for cash would include

Posting is the ____________________ step in the accounting cycle.

Transactions are entered in the journal in chronological order.

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

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include

The journal entry to record the payment of salaries should include

Posting references are part of the audit trail.

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?

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 5 of a general journal. Omit the descriptions.