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The balance ledger form always shows the current balance of an account.

A) True
B) False

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If an error is discovered before the entry is posted, the incorrect amount can be erased and the correct amount recorded.

A) True
B) False

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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.

E) A) and C)
F) C) and D)

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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 Sue Snow, Capital, and a credit to Cash.
B) a debit to Rent Expense and a credit to Cash.
C) a debit to Prepaid Rent and a credit to Cash.
D) a debit to Sue Snow, Drawing and a credit to Rent Expense.

E) None of the above
F) A) and C)

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Which of the following statements is not correct?


A) The description of a journal entry should include a reference to the source of the information contained in the entry.
B) If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction.
C) The credit portion of a general journal entry is always recorded first.
D) A firm should be able to trace amounts through the accounting records and back to their source documents.

E) B) and C)
F) A) and D)

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The number of the ____________________ is recorded in the Posting Reference column of the ledger account.

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Posting references provide a useful cross-reference when entries must be traced and verified.

A) True
B) False

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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.

E) None of the above
F) B) and C)

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The Posting Reference column of a journal is used to


A) record the date on which an amount is posted to a ledger account.
B) record the number of the ledger account to which the information is posted.
C) record the number of amounts posted to that ledger account since the beginning of the current accounting period.
D) record the page number of the ledger account.

E) B) and C)
F) C) and D)

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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) a debit to Equipment for $100 and a credit to Cash for $100.
B) a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.
C) a debit to Equipment for $100 and a credit to Accounts Payable for $400.
D) debit to Equipment for $500 and a credit to Cash for $500.

E) A) and C)
F) A) and D)

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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. Record the necessary correcting entries on page 2 of a general journal. Omit the descriptions. June 1 \quad Discovered that a purchase of supplies for $800\$ 800 cash was recorded \quad\quad\quad as a debit to Equipment and a credit to Cash \quad 2 \quad Discovered that a check for $1,100\$ 1,100 to the owner, Hank Rudolph, to \quad\quad pay one month's rent on his personal apartment was recorded as a debit to Rent Expense and a credit to Cash \quad 3 \quad Discovered that a receipt of $3,000\$ 3,000 cash from a credit customer was \quad\quad recorded as a debit to Cash and a credit to Accounts Payable \quad 4 \quad Discovered that $350\$ 350 services performed on credit were recorded as a debit to Cash and a credit to Fees Income

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Lourdes Yabar opened a computer repair business on May 1, 2010. During the first month of operations, the firm had the following transactions. Record these transactions on page 1 of the general journal. Omit the descriptions. Set up a Cash general ledger account and post the appropriate transactions to this account, account 101. Lourdes Yabar opened a computer repair business on May 1, 2010. During the first month of operations, the firm had the following transactions. Record these transactions on page 1 of the general journal. Omit the descriptions. Set up a Cash general ledger account and post the appropriate transactions to this account, account 101.

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Indicate how each of the following would be reflected in the journal entry required to record the effects described by using debit or credit to indicate the increase or decrease in each affected account. Indicate how each of the following would be reflected in the journal entry required to record the effects described by using debit or credit to indicate the increase or decrease in each affected account.

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The accounts with identification letters for Sealy Delivery Services are listed below. The accounts with identification letters for Sealy Delivery Services are listed below. During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example. During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example. The accounts with identification letters for Sealy Delivery Services are listed below. During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example.

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A journal entry can consist of no more than one account to be debited and one account to be credited.

A) True
B) False

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A(n) ____________________ entry is recorded when there is an error in data that has been journalized and posted.

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For each of the accounts listed below, enter the words, Increase or Decrease, the Debit and Credit columns to indicate the effects of each on the account balance. For each of the accounts listed below, enter the words, Increase or Decrease, the Debit and Credit columns to indicate the effects of each on the account balance.

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The accounts with identification letters for Orly Delivery Services are listed below. The accounts with identification letters for Orly Delivery Services are listed below. During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example. During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example. The accounts with identification letters for Orly Delivery Services are listed below. During the current month, the company completed the transactions listed below. Indicate the appropriate journal entry that needs to be recorded for each transaction by providing the account letter and amount. Some entries may need more than one debit and/or more than one credit. The first transaction is completed as an example.

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Which of the following statements is correct?


A) For every transaction recorded in the general journal, the year, month, and day on which the event occurred are written in the Date column.
B) When a transaction is journalized, the total of the amounts debited must equal the total of the amounts credited.
C) Journalizing transactions is the last step of the accounting cycle.
D) The general journal cannot accommodate every type of transaction that a business may have.

E) None of the above
F) A) and B)

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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.

E) B) and D)
F) C) and D)

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