Question 1

A payment of $350 was received from a charge customer and recorded and posted as $305. The necessary correcting entry is

Accepted Answer

A)  debit Cash, $45; credit Income from Services, $45.
B)  debit Cash, $45; credit Accounts Receivable, $45.
C)  debit Accounts Receivable, $45; credit Cash, $45.
D)  debit Cash, $45; credit Accounts Payable, $45.
E)  credit Cash $45; debit Accounts Receivable, $45.

Question 2

The process of writing a transaction in a ledger is called journalizing.

Accepted Answer

A) True 
 B)False

Question 3

The first step in the posting process is recording the

Accepted Answer

A)  journal page number in the ledger account.
B)  ledger account number in the journal.
C)  date in the ledger account.
D)  explanation in the journal.
E)  debit account and amount.

Question 4

The account number is recorded in the Post. Ref. column of the general journal when the transaction is first recorded in the journal.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following errors will probably be located when preparing a trial balance?

Accepted Answer

A)  Posting the debit of a journal entry as a credit and the credit as a debit
B)  Failure to record an entire entry in the journal
C)  Failure to post an entire entry in the ledger
D)  Failure to post part of an entry
E)  Posting the correct amount to the incorrect credit account

Question 6

What is the effect of the following error? The owner withdrew $3,000 for personal use. The accountant debited Wages Expense for $3,000 and credited Cash for $3,000.

Accepted Answer

A)  Net Income was understated.
B)  Cash was understated.
C)  Total Owner's Equity was understated.
D)  Cash was overstated.
E)  Wages Expenses were understated.

Question 7

The chart of accounts for Lara Landscaping is as follows:
  Lara Landscaping completed the following transactions in July:
  Instructions:
Journalize the transactions for July, including a brief explanation for each entry.

Accepted Answer

The answer of The chart of accounts for Lara Landscaping...

Question 8

Which of the following errors, each considered separately, would cause the trial balance totals to be unequal?

Accepted Answer

A)  A payment of $20 for Miscellaneous Expense was recorded as a debit of $20 to Cash and a credit of $20 to Miscellaneous Expense.
B)  The amount of $326 received from customers on account was posted as a debit of $236 to Cash and a credit of $236 to Accounts Receivable.
C)  A payment of $410 to a creditor was posted as a debit of $410 to Accounts Payable and a credit of $41 to Cash.
D)  A payment of $18 to a creditor was posted as a debit of $180 to Accounts Payable and a credit of $180 to Cash.
E)  A receipt of $36 for Income from Services was recorded as a debit to Cash for $36 and a credit to Account Receivable for $36.

Question 9

Match the terms below with the correct definitions.
 
-Book of original entry

Accepted Answer

The answer of Match the terms below with the correct...

Question 10

Irena Company had a beginning normal balance of $35,000 in the cash account. The accountant posted a $2,000 credit on June 2, a $350 credit on June 4, and a $5,250 debit on June 20. What is the balance of cash in the general ledger?

Accepted Answer

A)  $31,400 credit
B)  $32,100 debit
C)  $37,900 debit
D)  $41,900 credit

Question 11

Quick Lab Company received cash on account from patients. The transaction would involve a

Accepted Answer

A)  credit to Income from Services.
B)  debit to Income from Services.
C)  credit to Accounts Receivable.
D)  credit to Cash.

Question 12

If an entry is correctly journalized, but posted to the incorrect accounts, with equal debits and credits, the trial balance will still be out of balance.

Accepted Answer

A) True 
 B)False

Question 13

J. Jefferson invested $15,000 cash in his business. The accountant would record the following journal entry:

Accepted Answer

The answer of J. Jefferson invested $15,000 cash in his...

Question 14

Discuss the purposes of the general journal and the general ledger, as well as how they are connected.

Accepted Answer

The general journal is a book of origina...

Question 15

Which of the following errors, considered individually, would cause the trial balance totals to be unequal?

Accepted Answer

A)  Cash received from a customer on account was posted as a credit of $220 to Cash and a debit of $220 to Accounts Receivable.
B)  A payment of $76 for supplies was posted as a debit of $67 to Supplies Expense and a credit of $76 to Cash.
C)  A payment of $391 to a creditor was posted as a debit of $931 to Accounts Payable and a credit of $931 to Cash.
D)  A receipt of $252 from a customer was posted as a debit of $225 to Cash and a credit of $225 to Accounts Receivable.
E)  A payment of $83 to pay the telephone bill (received last week)  was posted as a debit of $38 to Accounts Payable and a credit of $38 to cash.

Question 16

Match the terms below with the correct definitions.
 
-Recording assets at actual cost

Accepted Answer

The answer of Match the terms below with the correct...

Question 17

Match the terms below with the correct definitions.
 
-Process of recording transactions in a journal

Accepted Answer

The answer of Match the terms below with the correct...

Question 18

Match the terms below with the correct definitions.
 
-Journal that has one column for debit amounts and one column for credit amounts

Accepted Answer

The answer of Match the terms below with the correct...

Question 19

The proof that the debits and credits in the ledger are equal is called the

Accepted Answer

A)  trial balance.
B)  journal.
C)  statement of owner's equity.
D)  income statement.
E)  balance sheet.

Question 20

A $800 payment for Rent Expense was incorrectly journalized and posted as a debit to Wages Expense for $800 and a credit to Cash for $800. The correcting entry, using the one-step method, would include a

Accepted Answer

A)  debit to Cash for $800.
B)  credit to Rent Expense for $800.
C)  credit to Wages Expense for $800.
D)  credit to Cash for $800.

Exam 3: The General Journal and the General Ledger

The chart of accounts for Lara Landscaping is as follows: Lara Landscaping completed the following transactions in July: Instructions: Journalize the transactions for July, including a brief explanation for each entry.

Correct AnswerverifiedShow Answer

What is the effect of the following error? The owner withdrew $3,000 for personal use. The accountant debited Wages Expense for $3,000 and credited Cash for $3,000.

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Journal that has one column for debit amounts and one column for credit amounts

Correct AnswerverifiedShow Answer

Irena Company had a beginning normal balance of $35,000 in the cash account. The accountant posted a $2,000 credit on June 2, a $350 credit on June 4, and a $5,250 debit on June 20. What is the balance of cash in the general ledger?

Correct AnswerverifiedShow Answer

The first step in the posting process is recording the

Correct AnswerverifiedShow Answer

Quick Lab Company received cash on account from patients. The transaction would involve a

Correct AnswerverifiedShow Answer

Which of the following errors will probably be located when preparing a trial balance?

Correct AnswerverifiedShow Answer

Which of the following errors, considered individually, would cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Recording assets at actual cost

Correct AnswerverifiedShow Answer

The proof that the debits and credits in the ledger are equal is called the

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Process of recording transactions in a journal

Correct AnswerverifiedShow Answer

If an entry is correctly journalized, but posted to the incorrect accounts, with equal debits and credits, the trial balance will still be out of balance.

Correct AnswerverifiedShow Answer

Discuss the purposes of the general journal and the general ledger, as well as how they are connected.

Correct AnswerverifiedThe general journal is a book of origina...View AnswerShow Answer

Which of the following errors, each considered separately, would cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

The account number is recorded in the Post. Ref. column of the general journal when the transaction is first recorded in the journal.

Correct AnswerverifiedShow Answer

J. Jefferson invested $15,000 cash in his business. The accountant would record the following journal entry:

Correct AnswerverifiedShow Answer

The process of writing a transaction in a ledger is called journalizing.

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Book of original entry

Correct AnswerverifiedShow Answer

A $800 payment for Rent Expense was incorrectly journalized and posted as a debit to Wages Expense for $800 and a credit to Cash for $800. The correcting entry, using the one-step method, would include a

Correct AnswerverifiedShow Answer

A payment of $350 was received from a charge customer and recorded and posted as $305. The necessary correcting entry is

Correct AnswerverifiedShow Answer

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The general journal is a book of origina...
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