Accounting Chapter 4 Quiz

a debit to Office Equipment and a credit to Utilities Expense

A firm purchased telephone equipment for cash. By mistake, the accountant debited Utilities Expense instead of Office Equipment. The error was discovered after the data posted. The correcting entry should contain:

Debit accounts receivable; credit cash

Bertrand Inc. preformed services for clients in the amount of $1750 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Debit Shop Equipment 4600, credit Office Equipment 4600

Bertrand Inc. purchased some shop equipment for $4,600 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

True

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

False

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

debit Cash, $865; credit Accounts Receivable, $865

On July 3, The ABC Company received $865 in cash on account from customers. The correct journal entry to record this transaction is:

True

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

a 3000 credit balance

The Accounts Payable account has a $5000 credit balance. An entry for the payment of $2000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is.

a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.

The Journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include

a debit to Accounts Receivable and a credit to Fees Income.

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

record the page number of the ledger account, record the number of amounts posted to that ledger account since the beginning of the current accounting period.record the number of the ledger account to which the information is posted.

The Posting Reference column of a journal is used to:

after each amount is posted

The account numbers from the ledger are recorded in the Posting Reference column of the general ledger:

True

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

Debit Salaries Expense, Credit Cash

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

a debit to Equipment for $1,040, a credit to Cash for $280, and a credit to Accounts Payable for $760.

The journal entry to record the purchase of equipment for a $280 cash down payment and a balance of $760 due in 30 says would include

False

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

Chronological order

Transactions in a journal are initially recorded in:

The accounts to be credited should be indented

When an entry is made in the general journal.

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

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