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Exam 4: The General Journal and the General Ledger

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Question 21

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Account names are written in the general journal exactly as they appear in the chart of accounts.

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Question 22

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Which of the following statements is NOT correct?

A) A firm should be able to trace amounts through the accounting records and back to their source documents.
B) The description of a journal entry should include a reference to the source of the information contained in the entry.
C) The credit portion of a general journal entry is always recorded first.
D) If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction.

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Question 23

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The journal entry to record the payment of the monthly rent would include:

On December 1, the Accounts Receivable account had a $22,000 debit balance. During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:

When transactions are entered in a general journal, the asset accounts are listed first, followed by the liability and owner's equity accounts.

The first place a transaction is recorded is in the:

The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is:

Which of the following statements is CORRECT?

If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

The accounts with identification letters for Sealy Delivery Services are listed below. $\begin{array} { l | l | l | l } \hline \mathrm { F } & \text { Office Equipment } & \mathrm { N } & \text { Salaries Expense } \\\hline \mathrm { G } & \text { Accounts Payable } & \mathrm { O } & \text { Utilities Expense } \\\hline \mathrm { H } & \text { Sealy, Capital } & & \\\hline\end{array}$ 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.

Listed below in random order are the steps in the accounting cycle. (1) prepare the financial statements (2) post the journal entries to the ledger (3) record journal entries (4) prepare a trial balance What is the proper order of these steps?

Determine the accounts and amounts to be debited and credited for the following transactions for Folk Furniture Repair. A. Issued a check for $950 to pay the monthly rent B. Issued a $2,000 check to pay a creditor on account. C. Purchased new equipment for $1,700 and paid $500 immediately by check with the remainder due in 30 days. D. Provided services on credit in the amount of $1,050 E. Performed services for cash in the amount of $1,200. F. The owner made an additional investment of $2,000 in cash and $800 in equipment. G. Purchased $130 worth of supplies on credit. H. Sent a $110 check to the utility company to pay the monthly bill. I. Collected $700 from credit customers.

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.

The following errors in recording the transactions for June 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 2 of a general journal. Omit the descriptions. June 1 Discovered that a purchase of supplies for $800 cash was recorded as a debit to Equipment and a credit to Cash 2 Discovered that a check for $1,100 to the owner, Hank Rudolph, to pay one month's rent on his personal apartment was recorded as a debit to Rent Expense and a credit to Cash 3 Discovered that a receipt of $3,000 cash from a credit customer was recorded as a debit to Cash and a credit to Accounts Payable 4 Discovered that $350 services performed on credit were recorded as a debit to Cash and a credit to Fees Income

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

When recording a business transaction into the general ledger, certain steps are followed. Identify the statement below that is NOT CORRECT regarding this process.

When an entry is made in the general journal,

Match the accounting terms with the description by entering the proper letter in the space provided. A. Accounting cycle B. Audit trail C. Balance ledger form D. Chronological order E. Compound entry F. Correcting entry G. General journal H. General ledger I. Journal J. Journalizing K. Ledger L. Posting ________ 1. A financial record for entering all types of business transactions; a record of original entry ________ 2. Transferring data from a journal to a ledger ________ 3. A series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information ________ 4. A permanent, classified record of all accounts used in a firm's operation; a record of final entry ________ 5. Recording transactions in a journal ________ 6. A ledger account form that shows the balance of the account after each entry is posted ________ 7. A journal entry with more than one debit or credit ________ 8. Organized in the order in which the events occur 9. A chain of references that makes it possible to trace information, locate errors, and prevent fraud ________ 10. A journal entry made to correct an erroneous entry 11. The record of original entry ________ 12. The record of final entry

The journal entry to record the payment of salaries should include:

Global Delivery opened for business on July 1, 2019. The company uses the general ledger accounts listed below. During the first month of business, the firm had the transactions listed below. Record the transactions on page 1 of a general journal. Omit descriptions. Set up a Cash general ledger account and post the appropriate transactions to this account, account 101.