VYC1 Chapter 4 Review

The following errors in recording the transactions for June were discovered in the general journal the next month after the data had been posted to the ledger. June 1 Discovered that a purchase of supplies for $800 cash was recorded as a debit to Equipment and a credit to Cash. 2 Discovered that a check for $1,100 to the owner, Hank Rudolph, to pay one month's rent on his personal apartment was recorded as a debit to Rent Expense and a credit to Cash. 3 Discovered that a receipt of $3,000 cash from a credit customer was recorded as a debit to Cash and a credit to Accounts Payable. 4 Discovered that $350 services performed on credit were recorded as a debit to Cash and a credit to Fees Income. Record the necessary correcting entries.

Date General Journal Debit Credit June 1 Supplies Debit 800 Equipment Credit 800 2 Hank Rudolph, Drawing Debit 1,100 Rent expense Credit 1,100 3 Accounts payable Debit 3,000 Accounts receivable Credit 3,000 4 Accounts receivable Debit 350 Cash Credit 350

The number of the journal page is recorded in the Posting Reference column of the ledger account to indicate that the total debits equal total credits.

F

A ledger is sometimes referred to as a record of original entry. True False

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

Posting references are part of the audit trail.

T

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.

The account numbers are recorded in the Posting Reference column of the general journal as the transaction is journalized. after each amount is posted. after all entries on the journal page have been posted. as the first amount written in the journal.

after each amount is posted.

The process of transferring the data from the journal into the ledgers is called: footing posting transponding journalizing

posting

The owner of the business would like to see the debit and credit entry for a specific transaction, he would look in the chart of accounts the journal the source document the ledger

the journal