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Exam 4: Journalizing and Posting Transactions

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Question 21

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If cash is paid for worker salaries,the transaction includes

A) debiting Salaries Expense and crediting Cash.
B) debiting Salaries Expense and crediting Accounts Payable.
C) debiting Salaries Expense and crediting Capital.
D) debiting Cash and crediting Salaries Expense.

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Question 22

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A chart of accounts does NOT include

A) assets.
B) liabilities.
C) owner's equity.
D) names of suppliers.

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Question 23

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The ledger is a reliable source of information only when all of the transactions entered in the journal have been posted.

When entering titles of accounts in the two-column journal,the account to be credited is entered first and the account to be debited is entered second.

An account in the chart of accounts is assigned a number at random.

Transactions and journal entries are shown below.Read the transaction and determine if the correct journal entry has been made.If a correction is necessary,use the ruling method to make the correction. a Bert Hollis, the owner, invested $\$ 45,000$ in the business. $\begin{array}{ll}\text { Cash } & 45,000 \\\text { Bert Hollis, Drawing } && 45,000\end{array}$ b. Hollis paid the monthly rent of $\$ 1,275$ . $\begin{array}{ll}\text { Cash } & 1,275 \\\text { Rent Expense } && 1,275\end{array}$ c. Hollis paid cash to Union Electric for monthly utilities, $\$ 250$ . $\begin{array}{llr} \text { Utilities Expense } &250 \\ \text {Accounts Payable } &&250\\\end{array}$ d. Hollis made payment on account for office supplies purchased previously, $\$ 100$ . $\begin{array}{llr} \text { Office Supplies } &100\\ \text { Accounts Payable } &&100\\\end{array}$ e. A customer made a payment on account, $\$ 1,100$ . $\begin{array}{ll}\text { Accounts Receivable } & 1,100 \\\text { Service Fees } && 1,100 \end{array}$

Copying the debits and credits from the journal to the ledger accounts is a process called ____________________.

The purpose of a trial balance is to prove that the totals of the debit and credit balances in the ledger accounts are equal.

Almost any document that provides information about a business transaction is included in the chart of accounts.

The ____________________ is used when a single line is drawn through the incorrect account title or amount and the correct information is written directly above the line.

The Posting Reference column of the journal provides a cross-reference between the

When the trial balance indicates that the ledger is in balance,you can assume there are no errors in the ledger.

Sales revenue received in cash is entered by

The flow of financial data through the accounting information system does NOT include

No entries are made in the Posting Reference column in a two-column journal when journalizing.

The chart of accounts includes assets,liabilities,and owner's equity accounts only.

Firms are more likely to use a four-column journal account than T accounts.

The flow of data through the accounting information system includes analyzing transactions,journalizing,posting,and preparing a trial balance.

The general ledger is kept to supply management with desired information in summary form.

Journal entries requiring more than one debit and/or one credit are called ____________________.