Chapter 4- The General Journal and the General Ledger
The journal entry to record the withdrawal 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 a sale on account should include
A debit to accounts receivable and a credit to sales
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 a sale for cash would include
A debit to cash and credit to sales
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
The CFO of the company would like to see all of the transactions posted against Cash, what does he need to look at?
Cash General Ledger
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 in cash sales to Agatha Panthis Landscape Architect Company is:
Debit cash; credit Sales
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
When a transaction is entered in the general journal, the account to be ________ is always recorded first in the description column
Debited
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
Transactions are recorded in either a journal or a ledger, but not in both
False
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
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 ledger is referred to as the record of ________ entry
Final
A description or account title should accompany each entry made in the _______ journal
General
The first place a transaction is recorded is in the
General Journal
The effects of each transaction are recorded in a financial record called a(n)___________
Journal
The number of the _______ is recorded in the posting reference column of the ledger account
Journal Page
The process of recording transactions in a journal is referred to as _________
Journalizing
When an entry is made in the general journal
The accounts to be credited should be indented
If a transaction is properly analyzed and recorded
The total dollar amount debited will equal the total dollar amount credited
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
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 general journal
When an entry is made in the general journal,
Accounts to be debited should be listed first
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
The process of transferring the data from the journal to the general ledger is called:
Posting
Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place are called
Source Documents
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
