Special Journals

A record used to keep the amount owed to each supplier is called a(n)

accounts payable ledger.

All individual entries in the sales journal are posted to the ____________________________ ledger.

accounts receivable

After posting is completed in the accounts receivable ledger and the general ledger, the total of the accounts receivable ledger balances should equal the

accounts receivable account balance.

A common approach to keeping a record of each customer's accounts receivable is to use a(n)

accounts receivable ledger.

A cash payments journal is a special journal used to record all of the following EXCEPT a cash purchase of supplies. an asset accepted as payment by a supplier. a cash withdrawal by the owner. a payment of an expense by check.

an asset accepted as payment by a supplier.

A journal that is not used by a business is a

cash flow journal.

The special journal to record a cash purchase of merchandise is the _______________________ journal.

cash payments

When using cash to purchase merchandise for resale, record the transaction in the

cash payments journal.

The special journal to record a cash sale is the ___________________________ journal.

cash receipts

A journal designed for entering only cash receipts is called the

cash receipts journal.

For the merchant, bank credit card sales are treated in a manner similar to

cash sales.

Purchases returns and allowances are recorded in the

general journal.

With a special journal, summary postings of column totals are made to appropriate accounts

monthly.

The special journal to record a purchase of merchandise on account is the __________________ journal.

purchases

When purchasing merchandise for resale on account, record the transaction in the

purchases journal.

A journal designed for entering only sales on account is called the

sales journal.

A list showing the amount due to each supplier as of a specified date is known as the

schedule of accounts payable.

A(n) _______________ journal is designed for recording only certain kinds of transactions.

special

Every entry in the cash payments journal includes all of the following EXCEPT the name of the supplier or other accounts debited. the amount of the cash payment entered in the Cash Debit column. the amount of the cash payment entered in the Cash Credit column. the number of the check issued.

the amount of the cash payment entered in the Cash Debit column.

Summary posting from the sales journal normally would be completed in which of the following orders?

Accounts Receivable, Sales, and Sales Tax Payable columns

"S14" in the Posting Reference column of a general ledger account would indicate that amount came from the sales journal on the 14th of the month.

False

A journal designed for entering only purchases on account is called an accounts receivable journal.

False

A purchases journal is a special journal used to record purchases of merchandise for cash and on account.

False

A recommended accounting practice in order to eliminate a General Debit column in the cash payments journal is to provide separate columns for special groups of entries such as Accounts Payable, Purchases, Purchases Discounts, and Cash.

False

An account number in the Posting Reference column of the purchases journal indicates that the amount has been posted to the account in the general ledger.

False

For the merchant, bank credit card sales are nothing like cash sales.

False

If a business uses special journals, it does NOT need to have a general journal.

False

Individual amounts for purchases returns and allowances are recorded in the General Debit column of the cash payments journal.

False

It is important to post every column total from the cash receipts journal to the general ledger.

False

Posting to the accounts payable ledger should be made at the end of the month.

False

Purchases Returns and Allowances are recorded in the purchases journal.

False

The sales journal can be used to enter any kind of sales, including cash sales and sales on account.

False

The total of the General Debit Column of the Cash Payments Journal should be posted to the general ledger at the end of each month.

False

The use of bank credit cards in connection with retail sales is not a common practice.

False

There is no need to total columns in the sales journal.

False

When a business uses a subsidiary accounts receivable ledger, there is no need to keep a summary accounts receivable account in the general ledger.

False

When posting the cash receipts journal to the general ledger, insert the date in the Date column and your initials in the Posting Reference column of each ledger account.

False

The cash receipts journal is posted to the general ledger in two stages. First, the individual amounts in the General Credit column are posted and then the total of the other amounts columns are posted.

True

The types of special journals a business uses should depend on the types of transactions that occur most frequently for a business.

True

Transactions that are similar in type and recorded frequently are likely to have a special journal.

True

After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the general ledger balance of

Accounts Payable.

Which of the following is NOT true about posting the cash receipts journal information at the end of the month? Post the individual amounts from the General Credit column to the appropriate general ledger accounts. Insert the date in the Date column and "CR" and the page number in the Posting Reference column of each ledger account. Post each column total except the General Credit column total to the general ledger accounts. Total the amount columns, prove the total of debits equal to credits, and rule the columns.

Post the individual amounts from the General Credit column to the appropriate general ledger accounts.

The accounts receivable ledger is simply a detailed listing of the same information that is summarized in the accounts receivable account in the general ledger.

True

A common approach to keeping a record of each customer's accounts receivable is to use a subsidiary accounts receivable ledger.

True

A journal designed for entering only cash receipts is called a cash receipts journal.

True

After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the Accounts Payable balance in the general ledger.

True

After the posting of the accounts receivable ledger and the general ledger is completed, the total of the accounts receivable ledger balances should equal the Accounts Receivable balance in the general ledger.

True

Each amount in the General Debit column of the cash payments journal should be posted daily.

True

Each general ledger account used in the purchases journal requires only one posting for each accounting period.

True

Each special journal allows for specific transactions.

True

If a buyer is given an allowance for damaged merchandise, an entry is required in the general journal.

True

It is an acceptable business practice to post the accounts receivable ledger daily and the general ledger monthly.

True

It is inefficient to record all cash payments in a general journal.

True

Most transactions entered in a special journal use a single line, with the debit and credit amounts indicated in special columns provided for each account.

True

Posting from the sales journal to the general ledger accounts requires only one posting per account each period.

True

Special journals enable a substantial time savings and make for a more efficient posting process.

True