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