ch 4 of terrible ACCt 1301

The journal is referred to as the

"record of original entry"

A series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information is called the ___ ____

Accounting cycle

simmons Associates paid $2,000 to Office Mart as payment on account for Invoice 9923. This transaction would be recorded with a debit to which account?

Accounts Payable

Jones Consulting provided $1,000 of consulting services on credit to a customer. This transaction would be recorded with a debit to which account?

Accounts Receivable

Sarah Woo invested $10,000 into her company. This transaction would be recorded by the company with a debit to which account?

Cash

Singh Consulting purchased $3,000 of Office Equipment by paying $1,000 cash and agreeing to pay the balance within 30 days. This transaction would be recorded with a credit to which account(s)? Equipment Expense Cash Accounts Payable Equipment

Cash Accounts Payable

A financial record for entering all types of business transactions is called the

General journal

Leah Associates purchased $500 of supplies on account. This transaction would be recorded with a debit to which account?

Supplies

Checks and invoice numbers are included in the journal entry description to

both provide an audit trail and trace information through the accounting system are correct.

A company provides consulting services to a customer and collects $500 cash. This transaction would be recorded with a debit to the_____ account and a credit to the _________account.

cash fees income

Diya Associates received $2,500 in cash from credit customers. This transaction would be recorded with which of the following entries? debit Fees Income for $2,500 credit Accounts Receivable for $2,500 debit Cash for $2,500 credit Fees Income for $2,500 debit Accounts Receivable for $2,500 credit Cash for $2,500

credit Accounts Receivable for $2,500 debit Cash for $2,500

Woo Consulting Services purchased office supplies on account for $500. This transaction would be recorded with which of the following entries? credit Supplies for $500 debit Cash for $500 debit accounts payable for $500 credit accounts payable for $500 credit Cash for $500 debit Supplies for $500

credit accounts payable for $500 debit Supplies for $500

Mitra Associates purchased equipment for $5,000, by paying $1,000 cash and agreeing to pay the balance in 30 days. This transaction would be recorded with which of the following entries?. debit to Cash for $1,000 credit to Accounts Payable for $4,000 debit to Equipment for $5,000 credit to Cash for $1,000 debit to Accounts Payable for $4,000 credit to Equipment for $5,000

credit to Accounts Payable for $4,000 debit to Equipment for $5,000 credit to Cash for $1,000

Nayak Associates performed services for $1,500 on account. This transaction would be recorded with which of the following entries?

debit Accounts Receivable for $1,500 credit Fees Income for $1,500

Nayak Associates performed services for $1,500 on account. This transaction would be recorded with which of the following entries? debit Accounts Receivable for $1,500 credit Accounts Receivable for $1,500 debit Cash for $1,500 debit Fees Income for $1,500 credit Fees Income for $1,500 credit Cash for $1,500

debit Accounts Receivable for $1,500 credit Fees Income for $1,500

Diya Associates performed services for $1,000 cash. This transaction would be recorded with which of the following entries? credit Cash for $1,000 debit Accounts Receivable for $1,000 debit Cash for $1,000 debit Fees Income for $1,000 credit Accounts Receivable for $1,000 credit Fees Income for $1,000

debit Cash for $1,000 credit Fees Income for $1,000

Raj Associates Paid $2,900 for salaries. This transaction would be recorded with which of the following entries? debit Salaries Expense for $2,900 credit Salaries Expense for $2,900 credit cash for $2,900 debit cash for $2,900

debit Salaries Expense for $2,900 credit cash for $2,900

Nola Associates paid $350 for the monthly utilities bill. This transaction would be recorded with which of the following entries? Multiple select question. credit Utilities Expense for $350 debit Utilities Expense for $350 credit Cash for $350 debit Cash for $350

debit Utilities Expense for $350 credit Cash for $350

Sana Gill withdrew $1,000 from her company for personal expenses. This transaction would be recorded with which of the following entries? debit to Sana Gill, Capital for $1,000 debit to Cash for $1,000 credit to Sana Gill, Capital for $1,000 debit to Sana Gill, Drawing for $1,000 credit to Sana Gill, Drawing for $1,000 credit to Cash for $1,000

debit to Sana Gill, Drawing for $1,000 credit to Cash for $1,000

The _____ provides a permanent, classified record of all accounts used in a firm's operation.

general ledger

The master reference file for the accounting system is called the_________ _________ . It provides a permanent, classified record of all accounts used in a firm's operation.

general ledger

The __________ keeps account records on a special form that makes it possible to record all data efficiently

ledger

the _____________keeps account records on a special form that makes it possible to record all data efficiently.

ledger

A company pays $2,400 cash to prepay the next two months rent. This transaction would be journalized with a debit to the_____________ account and a credit to the_____________ account.

prepaid rent cash

A company purchased $300 of supplies on account. This transaction would be journalized with a debit to the ______ account and a credit to the ______ account.

supplies accounts payable

Which of the following are correct statements about the process of journalizing in the general journal: the credit is recorded on the first line of the entry the account that is being credited should be slightly indented within the description column the description should refer to the source of the information the date should be entered in a MM/DD/YYYY format the date should be recorded in the Post Ref. Column

the account that is being credited should be slightly indented within the description column the description should refer to the source of the information

A series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information is called

the accounting cycle

Identify which of the following are correct statements about the process of journalizing in the general journal:

the description should refer to the source of the information the debit is recorded on the first line of the entry the date should be entered year first, then the month and day

Identify the correct statements about posting: takes place before transactions are journalized the third step of the accounting cycle records the information to the general ledger a process of transferring data from the journal to the record of final entry

the third step of the accounting cycle records the information to the general ledger a process of transferring data from the journal to the record of final entry

Identify the correct statements about posting: Multiple select question. takes place before transactions are journalized the third step of the accounting cycle records the information to the general ledger a process of transferring data from the journal to the record of final entry

the third step of the accounting cycle records the information to the general ledger a process of transferring data from the journal to the record of final entry

A company pays $200 cash for monthly utilities. This transaction would be recorded with a debit to the ______ ______account and a credit to the _____account.

utilities expense cash

Simmons Associates paid $2,000 to Office Mart as payment on account for Invoice 9923. This transaction would be recorded with a debit to which account?

Accounts Payable

Hernandez Associates provided services to a customer and collected $2,000 cash. This transaction would be recorded with a debit to which account?

Cash

Ito Consulting collected $5,000 from a credit customer. This transaction would be recorded with a debit to which account

Cash

Varsha Associates purchased Office Equipment for $5,000 cash. This transaction would be recorded with a debit to which account?

Equipment

Jason Thompson withdrew $500 from his company for personal expenses. This transaction would be recorded with a debit to which account?

Jason Thompson, Drawing

Business transactions are recorded in a________.which is a diary of business activities.

Journal

Lee Associates paid $3,000 to prepay rent. This transaction would be recorded with a debit to which account?

Prepaid Rent

Gill Consulting wrote a check for $4,500 to pay for salaries. This transaction would be recorded with a debit to which account?

Salaries Expense

Match the correct order to the appropriate step of analyzing a business transaction:

Step 1 Analyze the financial event Step 2 Apply the rules of debit and credit Step 3 Make the entry in T-account form to help analyze the transaction (optional) Step 4 Record the complete entry in general journal form

True or false: The process of posting to the general ledger requires that you compute new balances in at least two accounts.

True

A company makes a $1,000 payment to Supplies Mart, to pay the outstanding balance on account. This transaction would be journalized with a debit to the___________account and a credit to the____________account

accounts payable cash

A company provides consulting services to a customer and bills the customer $500.This transaction would be journalized with a debit to the _________________account and a credit to the_________________account.

accounts receivable fees income

A ledger account form that shows the balance of the account after each entry is posted is called

balance ledger form

An owner invests $3,000 into her company. The company would record this transaction with a debit to the ________ account.

cash

A journal entry that contains more than one debit or credit, is called a_____________entry.

compound

If an error is discovered before the entry is posted, the correction will be made by

crossing out the incorrect item and writing the correct data above it

Louis Guzman invested $10,000 into his company. This transaction would be recorded by the company with which of the following entries?

debit to Cash for $10,000 credit to Louis Guzman, Capital for $10,000

Guzman Consulting Services issued a check for $2,000 to purchase equipment. This transaction would be recorded with which of the following entries?

debit to Equipment for $2,000 credit to Cash for $2,000

If an error is discovered after the entry is posted, the correction will be made by:

entering a correcting entry

A company purchased equipment for $2,000 cash. This transaction would be journalized with a debit to the_______________account and a credit to the______________________account.

equipment cash

A company pays $3,500 for weekly salaries. This transaction would be recorded with a debit to the salaries____________account and a credit to the____________account

expense cash

A _____ is financial record used for entering all types of business transactions.

general journal

A record of original entry where business transactions are recorded is called a

journal

Also known as the record of final entry, the_____________keeps account records on a special form that makes it possible to record all data efficiently.

ledger

Also known as the record of final entry________keeps account records on a special form that makes it possible to record all data efficiently

ledger

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

posting