Question 1

Which of the following errors, each considered separately, would cause the trial balance totals to be unequal?

Accepted Answer

A) A payment of $20 for Miscellaneous Expense was recorded as a debit of $20 to Cash and a credit of $20 to Miscellaneous Expense. 
B) The amount of $326 received from customers on account was posted as a debit of $236 to Cash and a credit of $236 to Accounts Receivable. 
C) A payment of $410 to a creditor was posted as a debit of $410 to Accounts Payable and a credit of $41 to Cash. 
D) A payment of $18 to a creditor was posted as a debit of $180 to Accounts Payable and a credit of $180 to Cash. 
E) A receipt of $36 for Income from Services was recorded as a debit to Cash for $36 and a credit to Account Receivable for $36.

Question 2

The first step in the posting process is recording the

Accepted Answer

A) journal page number in the ledger account. 
B) ledger account number in the journal. 
C) date in the ledger account. 
D) explanation in the journal. 
E) debit account and amount.

Question 3

The process of writing a transaction in a ledger is called journalizing.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following errors, considered individually, would cause the trial balance totals to be unequal?

Accepted Answer

A) Cash received from a customer on account was posted as a credit of $220 to Cash and a debit of $220 to Accounts Receivable. 
B) A payment of $76 for supplies was posted as a debit of $67 to Supplies Expense and a credit of $76 to Cash. 
C) A payment of $391 to a creditor was posted as a debit of $931 to Accounts Payable and a credit of $931 to Cash. 
D) A receipt of $252 from a customer was posted as a debit of $225 to Cash and a credit of $225 to Accounts Receivable. 
E) A payment of $83 to pay the telephone bill (received last week) was posted as a debit of $38 to Accounts Payable and a credit of $38 to cash.

Question 5

What is the effect of the following error? The owner withdrew $3,000 for personal use. The accountant debited Wages Expense for $3,000 and credited Cash for $3,000.

Accepted Answer

A) Net Income was understated. 
B) Cash was understated. 
C) Total Owner's Equity was understated. 
D) Cash was overstated. 
E) Wages Expenses were understated.

Question 6

Irena Company had a beginning normal balance of $35,000 in the cash account. The accountant posted a $2,000 credit on June 2, a $350 credit on June 4, and a $5,250 debit on June 20. What is the balance of cash in the general ledger?

Accepted Answer

A) $31,400 credit 
B) $32,100 debit 
C) $37,900 debit 
D) $41,900 credit

Question 7

A $800 payment for Rent Expense was incorrectly journalized and posted as a debit to Wages Expense for $800 and a credit to Cash for $800. The correcting entry, using the one-step method, would include a

Accepted Answer

A) debit to Cash for $800. 
B) credit to Rent Expense for $800. 
C) credit to Wages Expense for $800. 
D) credit to Cash for $800.

Question 8

J. Jefferson invested $15,000 cash in his business. The accountant would record the following journal entry:

Accepted Answer

The answer of J. Jefferson invested $15,000 cash in his...

Question 9

Which of the following errors will probably be located when preparing a trial balance?

Accepted Answer

A) Posting the debit of a journal entry as a credit and the credit as a debit 
B) Failure to record an entire entry in the journal 
C) Failure to post an entire entry in the ledger 
D) Failure to post part of an entry 
E) Posting the correct amount to the incorrect credit account

Question 10

Match the terms below with the correct definitions.
 
-Recording assets at actual cost

Accepted Answer

The answer of Match the terms below with the correct...

Question 11

Match the terms below with the correct definitions.
 
-Book of original entry

Accepted Answer

The answer of Match the terms below with the correct...

Question 12

The account number is recorded in the Post. Ref. column of the general journal when the transaction is first recorded in the journal.

Accepted Answer

A) True 
 B)False

Question 13

The proof that the debits and credits in the ledger are equal is called the

Accepted Answer

A) trial balance. 
B) journal. 
C) statement of owner's equity. 
D) income statement. 
E) balance sheet.

Question 14

Quick Lab Company received cash on account from patients. The transaction would involve a

Accepted Answer

A) credit to Income from Services. 
B) debit to Income from Services. 
C) credit to Accounts Receivable. 
D) credit to Cash.

Question 15

If an entry is correctly journalized, but posted to the incorrect accounts, with equal debits and credits, the trial balance will still be out of balance.

Accepted Answer

A) True 
 B)False

Question 16

The chart of accounts for Lara Landscaping is as follows:
  Lara Landscaping completed the following transactions in July:
  Instructions:
Journalize the transactions for July, including a brief explanation for each entry.

Accepted Answer

The answer of The chart of accounts for Lara Landscaping...

Question 17

Discuss the purposes of the general journal and the general ledger, as well as how they are connected.

Accepted Answer

The answer of Discuss the purposes of the general journal...

Question 18

A payment of $350 was received from a charge customer and recorded and posted as $305. The necessary correcting entry is

Accepted Answer

A) debit Cash, $45; credit Income from Services, $45. 
B) debit Cash, $45; credit Accounts Receivable, $45. 
C) debit Accounts Receivable, $45; credit Cash, $45. 
D) debit Cash, $45; credit Accounts Payable, $45. 
E) credit Cash $45; debit Accounts Receivable, $45.

Question 19

Match the terms below with the correct definitions.
 
-Journal that has one column for debit amounts and one column for credit amounts

Accepted Answer

The answer of Match the terms below with the correct...

Question 20

Match the terms below with the correct definitions.
 
-Process of recording transactions in a journal

Accepted Answer

The answer of Match the terms below with the correct...

Exam 3: The General Journal and the General Ledger

Which of the following errors, each considered separately, would cause the trial balance totals to be unequal?

The first step in the posting process is recording the

The process of writing a transaction in a ledger is called journalizing.

Which of the following errors, considered individually, would cause the trial balance totals to be unequal?

What is the effect of the following error? The owner withdrew $3,000 for personal use. The accountant debited Wages Expense for $3,000 and credited Cash for $3,000.

Irena Company had a beginning normal balance of $35,000 in the cash account. The accountant posted a $2,000 credit on June 2, a $350 credit on June 4, and a $5,250 debit on June 20. What is the balance of cash in the general ledger?

A $800 payment for Rent Expense was incorrectly journalized and posted as a debit to Wages Expense for $800 and a credit to Cash for $800. The correcting entry, using the one-step method, would include a

J. Jefferson invested $15,000 cash in his business. The accountant would record the following journal entry:

Which of the following errors will probably be located when preparing a trial balance?

Match the terms below with the correct definitions. -Recording assets at actual cost

Match the terms below with the correct definitions. -Book of original entry

The account number is recorded in the Post. Ref. column of the general journal when the transaction is first recorded in the journal.

The proof that the debits and credits in the ledger are equal is called the

Quick Lab Company received cash on account from patients. The transaction would involve a

If an entry is correctly journalized, but posted to the incorrect accounts, with equal debits and credits, the trial balance will still be out of balance.

The chart of accounts for Lara Landscaping is as follows: Lara Landscaping completed the following transactions in July: Instructions: Journalize the transactions for July, including a brief explanation for each entry.

Discuss the purposes of the general journal and the general ledger, as well as how they are connected.

A payment of $350 was received from a charge customer and recorded and posted as $305. The necessary correcting entry is

Match the terms below with the correct definitions. -Journal that has one column for debit amounts and one column for credit amounts

Match the terms below with the correct definitions. -Process of recording transactions in a journal