The General Journal & the G/L (TRUE/FALSE EXERCISE)

Transactions are recorded in either a journal or a ledger, but not in both

False

If a transaction is properly analyzed and recorded

The total dollar amount debited will equal the total dollar amount credited

When a transaction is entered in the general journal, the account to be ________ is always recorded first in the description column

Debited

Transactions in a journal are initially recorded in

Account number order

A journal entry containing more than one debit or more than one credit is called a(n)___________ entry

Compound

Which of the statements is CORRECT?

D.

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

False

On june 1, XYZ Inc. paid $400 to its landlord for rent for the current month. The journal entry to record this transaction is:

Rent expense....................400 cash............................................400

Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place are called

Source Documents

When an entry is made in the general journal

The accounts to be credited should be indented

The number of the _______ is recorded in the posting reference column of the journal

ledger account

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

the journal

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

A debit to Sue Snow, Drawing and a credit to cash

The journal entry to record the sale of services on credit should include

A debit to accounts receivable and a credit to fees income

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

A debit to cash and a credit to accounts receivable

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

A debit to cash and credit to fees income

The journal entry to record a payment made in january for rent for the months of february and march would include

A debit to prepaid rent and a credit to cash

When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process

An explanation is indented and entered on the line underneath the last credit in the entry.

Which of the following statements is NOT Correct?

C.

A(n)________ entry is recorded when there is an error in data that has been journalized and posted.

Correcting

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

Debit cash, $865; credit account receivable, $ 865

The journal entry to record $2450 of revenue earned and received in cash by agatha panthis landscape architect company is:

Debit cash; credit fees income

A purchase of office equipment for $380 cash in journalized as:

Debit office equipment; credit cash

Identify the entry below that records the acquisition of office supplies on account

Debit office supplies; credit accounts payable

The journal entry to record the payment of salaries for the month is:

Debit salaries expense; credit cash

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:

Debit utilities expense; credit accounts payable

The ledger is referred to as the record of ________ entry

Final

A description should accompany each entry made in the _______ journal

General

The effects of each transaction are recorded in a financial record called a(n)___________

Journal

The first place a transaction is recorded is in the

Journal

The number of the _______ is recorded in the posting reference column of the ledger account

Journal Page

On December 5, Honor Consulting Services issued a check to purchase $800 in office supplies. The journal entry to record this transaction is:

Office Supplies...............................800 cash........................................................800

A journal is referred to as a record of ________ entry

Original

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

Post

The process of transferring data from a journal to a ledger is known as _________

Posting

A ledger account contains a complete record of the individual transaction activity in each account

True

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

True

If a journal entry that contains an error has already been posted, a correcting entry should be journalized and posted

True

Posting references are part of the audit trail

True

Posting references provide a useful cross-reference when entries must be traced and verified

True

The balance ledger form always shows the current balance of an account

True

The revenue accounts come before the expense accounts in the general ledger

True

Transactions are entered in the journal in chronological order

True

The journal entry to record the payment of salaries should include

A debit to salaries expense and a credit to cash

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

A debit to utilities expense and a credit to cash

When an entry is made in the general journal,

Accounts to be debited should be listed first

A journal entry can consist of no more than one account to be debited and one account to be credited

False

A ledger is sometimes referred to as a record of original entry

False

An amount debited to cash in a journal entry should be posted as a credit to the cash account in the ledger

False

If an error is discovered before the entry is posted, the incorrect amount can be erased and the correct amount recorded

False

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

False

The process of recording transactions in a journal is referred to as _________

Journalizing

The process of transferring the data from the journal to the general ledger is called:

Posting