Chapter 4 homework

The process of transferring the data from the journal to the general ledger is called: A.) footing. B.) posting. C.) transposing. D.) journalizing.

B.) posting.

Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place are called A.) ledgers B.) source documents C.) debit entries. D.) accounts

B.) source documents

When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process. A.) An explanation is indented and entered on the line underneath the last credit in the entry. B.) All transactions are recorded first in the general ledger and then they are journalized in the journal. C.) All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. D.) No dates are used in the journal

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

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

A.) Debit Accounts Receivable $1,350; credit Cash $1,350

Which of the following statements 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.

A.) The general ledger contains the accounts that are used to prepare the financial statements.

The general ledger accounts are usually arranged in the following order: A.) first the balance sheet accounts, then the income statement accounts. B.) first the accounts with debit balances, then the accounts with credit balances. C.) first the temporary accounts, then the permanent accounts. D.) first the accounts used most often, then those used less frequently.

A.) first the balance sheet accounts, then the income statement accounts.

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.

A.) the accounts to be credited should be indented.

On December 5, Honor Consulting Services issued a check to purchase $800 in office supplies. The journal entry to record this transaction is: A.) Debit Cash for $800 and credit Office Supplies for $800. B.) Debit Office Supplies for $800 and credit Cash for $800. C.) Debit Cash for $800 and credit Accounts Payable for $800. D.) Debit Office Supplies for $800 and Accounts Receivable for $800.

B.) Debit Office Supplies for $800 and credit Cash for $800.

When an entry is made in the general journal, A.) assets should be listed first. B.) accounts to be debited should be listed first. C.) Depreciation expense accounts to be increased should be listed first. D.) accounts may be listed in any order.

B.) accounts to be debited should be listed first.

The journal entry to record the payment of salaries for the month is: A.) Debit Salaries; Credit Accounts Payable B.) Debit Cash; Credit Salaries Expense C.) Debit Salaries Expense; Credit Cash D.) Debit Cash; Credit Salaries Payable

C.) Debit Salaries Expense; Credit Cash

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 entry should be crossed out and 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

C.) 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.

If a journal entry that contains an error has already been posted, A.) the incorrect items should be erased and replaced with the correct data. B.) the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it. C.) a correcting entry should be journalized and posted. D.) the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger.

C.) a correcting entry should be journalized and posted.

The journal entry to record the receipt of cash from credit clients on account would include A.) a debit to Cash and a credit to Fees Income. B.) debit to Fees Income a and a credit to Cash. C.) a debit to Cash and a credit to Accounts Receivable. D.) a debit to Accounts Receivable and a credit to Cash.

C.) a debit to Cash and a credit to Accounts Receivable.

The journal entry to record a payment made in January for rent for the months of February and March would include A.) a debit to Rent Expense and a credit to Cash. B.) a debit to Cash and a credit to Prepaid Rent. C.) a debit to Prepaid Rent and a credit to Cash. D.) a debit to Prepaid Rent and a credit to Accounts Receivable

C.) a debit to Prepaid Rent and a credit to Cash.

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include A.) a debit to Sue Snow, Capital, and a credit to Cash. B.) a debit to Utilities Expense and a credit to Cash. C.) a debit to Sue Snow, Drawing and a credit to Cash. D.) a debit to Sue Snow, Drawing and a credit to Utilities Expense.

C.) a debit to Sue Snow, Drawing and a credit to Cash.

The journal entry to record the payment of a monthly utility bill would include A.) a debit to Utilities Expense and a credit to Capital. B.) a debit to Capital and a credit to Cash. C.) a debit to Utilities Expense and a credit to Cash. D.) a debit to Utilities Expense and a credit to Accounts Payable.

C.) a debit to Utilities Expense and a credit to Cash.

The first place a transaction is recorded is in the A.) source document B.) general ledger C.) journal D.) trial balance

C.) journal

The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is A.) a $3,000 debit balance. B.) a $27,000 debit balance. C.) a $13,000 debit balance. D.) a $17,000 debit balance.

D.) a $17,000 debit balance.

The journal entry to record the sale of services on credit should include A.) a debit to Accounts Receivable and a credit to Capital. B.) revenues and expenses. a debit to Cash and a credit to Accounts Receivable. C.) assets, liabilities, stockholders' equity, revenues, expenses, and dividends. D.) a debit to Accounts Receivable and a credit to Fees Income.

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

A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include A.) a debit to Equipment for $15,000 and a credit to Cash for $15,000. B.) a debit to Equipment for $1,000 and a credit to Cash for $1,000. C.) a debit to Equipment for $14,000 and a credit to Accounts Payable for $14,000. D.) a debit to Equipment for $15,000, a credit to Cash for $1,000 and a credit to Accounts Payable for $14,000.

D.) a debit to Equipment for $15,000, a credit to Cash for $1,000 and a credit to Accounts Payable for $14,000.