accounting 251

journal

A chronological record of all economic events affecting a firm are recorded in a(n)

chronological record of all transactions affecting a firm.

A journal provides a

debits; credits

A t-account has space at the top for the account title and two sides for recording ______ and ______ to the account.

Debit equipment Credit cash

Farmer, Inc. purchases a tractor for $80,000 cash. Recording this transaction will require which of the following?

ledger

Which of the following includes the list of transactions affecting each individual account and the account's balance?

Revenue

Which type of account is increased with a credit?

Expense

Which type of account is increased with a debit?

Journal Ledger

a transaction is initially recorded in the general ____________ and then subsequently posted to the general ___________

debit credit

accounts on the left side of he accounting equation (assets) are increased with a(n) _______ to the account, accounts on the right side of the accounting equation are increased with a(n) ___________

debits and credits.

An account should have an account title, account number, a place for the date of the transaction, and two columns for

t-account

An account that is used informally for analysis instead of drawing a formal general ledger account is referred to as a:

expenses and dividends

Credits increase revenues, whereas debits increase

Debit accounts receivable; credit service revenue.

National Company provides services to customers on account for $20,000. Which of the following journal entries is used to record this transaction?

Debit cash $3,000; credit note payable $3,000.

Rawlings Corp. borrows $3,000 on a note payable from Third National Bank. Which of the following is used to record this transaction?

Debit notes payable; credit cash.

On June 1, Kale Inc. repays a promissory note for $10,000. Which of the following is used to record this transaction?

credit to revenues.

Turkey Corp. provides services to customers on account for $3,000. Recording this transaction will include a

expenses and dividends.

Credits increase revenues, whereas debits increase

Debit accounts receivable; credit service revenue.

On August 2, Garner Company provides services to a long-time customer for $50,000. Payment for this service is due on September 1. Which of the following journal entries is made to record this transaction on August 2?

cash

Recording the repayment of a promissory note will include a credit to

False

True or false: A ledger provides a chronological record of all transactions affecting the firm.

account; general ledger

A(n) ______ is maintained for each financial statement item, whereas a(n) ______ contains all of the accounts of the company.

deferred revenue.

Beloit Company receives $40,000 from customers for services to be performed in the following year. Recording this transaction will include a credit to

debit to cash credit to notes payable

Roland Corporation borrows $10,000 from the bank by signing a promissory note. Recording this transaction will include:

debit to accounts receivable. credit to revenues.

Roslin Corp. provides services to customers on account for $5,000. Recording this transaction will include a

debit to equipment $100,000.

Sinclair purchased equipment for $100,000 cash. Recording this transaction would include a

borrowed $15,000 cash and signed a note

Smith Company's journal shows a debit to cash and a credit to notes payable, both for $15,000. This indicates that Smith Company:

posting

The process of transferring information from a journal entry to the specific accounts affected in the general ledger is referred to as

Posting

The process of transferring information from the journal to the ledger is referred to as

provide in a single location the list of transactions affecting each account and the account's balance.

The purpose of a general ledger is to

record a chronological listing of every transaction for a company.

The purpose of a journal is to

left right

The term debit means to place the entry on the_________hand side of the account, and the term credit means to place the entry on the________hand side of the account.

columns for debits and credits. the account title.

The type of information included in an account includes