College Accounting Chapter 4
When an entry is made in the general journal, a) assests should be listed first b)accounts to be debited should be listed first c) accounts to be increased should be listed first d) accounts may be listed in any order
Accounts to be debited should be listed first
Which of the following statements is correct? a) all transactions require compound entries b) Compound entries include only debits c) Accounts being debited should always follow the accounts being credited in a compound entry
Compound entries include only debits
Bertrand Inc. performed services for clients in the amount of $1,350 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? A. Debit Accounts Receivable $1,350; credit Cash $1,350 B. Debit Cash $1,350; credit Accounts Receivable $1,350 C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 D. Debit Fees Income $1,350; credit Cash $1,350
Debit Accounts Receivable $1350; credit Cash $1350
Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary? A. Debit Office Equipment $4,500; credit Shop Equipment $4,500 B. Debit Shop Equipment $4,500; credit Office Equipment $4,500 C. Debit Cash $4,500; credit Shop Equipment $4,500 D. Debit Office Equipment $4,500; credit Cash $4,500
Debit Shop Equipment $4500, credit Office Equipment $4500
The general ledger accounts are usually arranged in the following order
First the balance sheet accounts, the the income statement accounts
Which of the following statements is not correct
The credit portion of a general journal entry is always recorded first
Which of the following statements is correct
When a transaction is journalized, the total of the amounts debited must equal the total of the amounts credited
The Cash account has a $15,000 debit balance. A 5,000$ credit entry and a $7000 debit entry are posted to the account. The final balance of the Cash account is
a $17,000 debit balance
The Accounts Payable account has a $3000 credit balance, An entry for the payment of $1000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is
a $2000 credit balance
If a journal entry that contains an error has already been posted, what needs to be done?
a correcting entry should be journalized and posted
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 purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include
a debit to Equipment for 500$, a credit to Cash for $100, and a credit to Accounts Payable for $400
A firm purchased telephone equipment for cash. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. The error was discovered after the data posted. The correcting entry should contain
a debit to Office Equipment and a credit to Utilities Expense
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
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 the payment of a monthly utility bill would include
a debit to Utilities Expense and a credit to cash
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 a credit to fees income
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 account numbers are recorded in the Posting Reference column of the general journal
after each amount posted
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
Transactions are recorded in either a journal or a ledger, but not in both
false
When a transaction is entered in the general journal, the first account 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 owners equity accounts
false
the number of the journal page is recorded in the posting reference column of the ledger account to indicated that the total debits equal total credits
false
Which of the following statements is correct? a) All errors made in journal entries should be corrected by the preparation of a correcting journal entry b) if an error in a journal entry is discovered before the entry is posted to the general ledger the entry can simply be erased and replaced with the correct journal entry c) if an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the correct data written above it d) If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry
if an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it
The Posting Reference column of a journal is used to
record the number of the ledger account to which the information is posted
When an entry is made in the general journal, a)the accounts to be credited should be indented b) the first account entered should be indented c) liability, capital, and revenue accounts should be indented d) asset accounts should be indented
the accounts to be credited should be indented
Which statement is correct? a) The general ledger contains the accounts that are used to prepare the financial statements b) some companies use the general ledger instead of a general journal c) when entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger d) When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal
the general ledger contains the accounts that are used to prepare the financial statements
If a transaction is properly analyzed and recorded,
the total amount debited will equal the total amount credited
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