Question 1

Clark Clocks had a cash account beginning balance of $30,250 in the month of July. The accountant posted a $1,000 credit on July 3, a $630 credit on July 8, and a $3,150 debit on July 20. What is the balance of Cash in the general ledger?

Accepted Answer

A)   $31,770 debit
B)   $28,620 debit
C)   $28,620 credit
D)   $31,770 creditE) All of the above
F) C) and D)

Question 2

Homer Services pays the monthly rent, $5,000. The transaction would involve a

Accepted Answer

A)   debit to Prepaid Rent.
B)   debit to Rent Expense.
C)   credit to Rent Payable.
D)   debit to Cash.E) A) and D)
F) A) and C)

Question 3

Match the terms below with the correct definitions.
-Official list of all ledger accounts

Accepted Answer

A)  Chart of accounts
B)  Journalizing
C)  General ledger account
D)  General ledger
E)  JournalF) Source documentsG) PostingH) Account numberI) General journalJ) Cost principleK) A) and C)
L) A) and J)

Question 4

A ledger account contains a complete record of the transaction activity in that account.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Chart of accounts
B)  Journalizing
C)  General ledger account
D)  General ledger
E)  JournalF) Source documentsG) PostingH) Account numberI) General journalJ) Cost principleK) B) and E)
L) C) and H)

Question 6

Stonehenge Company received cash on account, $2,500. The accountant would record the following journal entry:

Accepted Answer

A)    Cash $2,500 C. Man, Capital $2,500\begin{array} { l c } 	ext { Cash } & \$ 2,500 \	ext { C. Man, Capital } & \$ 2,500\end{array} Cash  C. Man, Capital ​$2,500$2,500​ 
B)   Income from Services  $2,500\quad\$ 2,500$2,500 Cash  $2,500\quad\$ 2,500$2,500 
C)     Cash $2,500 Income from Services $2,500\begin{array} { l } 	ext { Cash }&\$ 2,500 \	ext { Income from Services } &\$ 2,500\end{array} Cash  Income from Services ​$2,500$2,500​ 
D)     Cash $2,500	ext { Cash } \quad \$ 2,500 Cash $2,500   Accounts Receivable $2,500	ext { Accounts Receivable } \quad \$ 2,500 Accounts Receivable $2,500E) A) and B)
F) A) and C)

Question 7

J. Forest deposited $60,000 in the bank in the name of the business. The transaction would involve a

Accepted Answer

A)   debit to Cash.
B)   credit to Cash.
C)   credit to J. Forest, Drawing.
D)   debit to J. Forest, Capital.E) A) and C)
F) A) and B)

Question 8

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

Accepted Answer

A)  Chart of accounts
B)  Journalizing
C)  General ledger account
D)  General ledger
E)  JournalF) Source documentsG) PostingH) Account numberI) General journalJ) Cost principleK) C) and D)
L) E) and G)

Question 9

Tonka Services receives a bill for a three-month liability insurance policy. The transaction would involve a

Accepted Answer

A)   debit to Insurance Expense.
B)   debit to Prepaid Insurance.
C)   credit to Insurance Expense.
D)   credit to Cash.E) A) and B)
F) A) and C)

Question 10

Which of the following is/are not true about a proper journal entry?

Accepted Answer

A)   An explanation is needed immediately after each debit and immediately after each credit.
B)   All credits are indented.
C)   A debit is never indented, even if a liability or owner's equity account is involved.
D)   All debits are listed before the first credit.
E)   In a compound entry, the largest amounts are listed first.F) A) and D)
G) A) and E)

Question 11

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

Accepted Answer

A)  Chart of accounts
B)  Journalizing
C)  General ledger account
D)  General ledger
E)  JournalF) Source documentsG) PostingH) Account numberI) General journalJ) Cost principleK) B) and I)
L) A) and H)

Question 12

Failure to post an entire transaction will not be reflected in the trial balance.

Accepted Answer

A) True 
 B)False

Question 13

Lohan Company had the following account balances as of June 30. 
Cash $29,000
Equipment $15,000
Accounts Payable $2,800
T. Lohan, Capital $62,700
T. Lohan, Drawing $5,000
Income from Services $35,000
Rent Expense $12,000
Salaries Expense $8,000
What is the debit balance of the trial balance?

Accepted Answer

A)   $141,700
B)   $136,700
C)   $64,000
D)   $69,000E) All of the above
F) A) and D)

Question 14

A cash payment of $130 on account was recorded as a $310 debit to Accounts Payable and a $310 credit to Cash. The necessary correcting entry is

Accepted Answer

A)   debit Cash, $180; credit Accounts Receivable, $180.
B)   debit Accounts Payable, $180; credit Cash, $180.
C)   debit Cash, $180; credit Accounts Payable, $180.
D)   debit Accounts Receivable, $180; credit Cash, $180.
E)   debit Cash $130, credit Accounts Payable, $130.F) A) and D)
G) A) and C)

Question 15

Use the manual ruling method when amounts have been posted to the wrong account.

Accepted Answer

A) True 
 B)False

Question 16

The first step in the posting process is to write the amount of the transaction in the ledger account.

Accepted Answer

A) True 
 B)False

Question 17

If an entry is recorded twice, the error will show up in the trial balance.

Accepted Answer

A) True 
 B)False

Question 18

When an entry is posted, the last step in the process is

Accepted Answer

A)   recording the explanation.
B)   placing the account number in the Post. Ref. column of the journal.
C)   placing the journal page number in the Post. Ref. column of the ledger.
D)   placing the account number in the Post. Ref. column of the ledger.
E)   placing the balance of the account in either the debit or credit column in the ledger.F) A) and B)
G) C) and E)

Question 19

Which of the following is true concerning posting?

Accepted Answer

A)   The date of the transaction should be written in the account's Date column.
B)   The page number of the journal should be written in the Post. Ref. column of the ledger account.
C)   The amount of the transaction should be recorded in either the debit or credit column.
D)   The ledger account number should be recorded in the Post. Ref. column of the journal.
E)   All of the answers listed are correct.F) A) and C)
G) B) and E)

Question 20

Which of the following is correct concerning recording journal entries?

Accepted Answer

A)   The credit part of the entry is recorded first.
B)   The credit account is always indented underneath the debit entry.
C)   The debit part of the entry is recorded last.
D)   Dollar signs are always recorded in the journal.E) B) and D)
F) A) and C)

Exam 3: The General Journal and the General Ledger

When an entry is posted, the last step in the process is

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Tonka Services receives a bill for a three-month liability insurance policy. The transaction would involve a

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Which of the following is correct concerning recording journal entries?

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Stonehenge Company received cash on account, $2,500. The accountant would record the following journal entry:

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

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The first step in the posting process is to write the amount of the transaction in the ledger account.

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Match the terms below with the correct definitions. -Official list of all ledger accounts

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Lohan Company had the following account balances as of June 30. Cash $29,000 Equipment $15,000 Accounts Payable $2,800 T. Lohan, Capital $62,700 T. Lohan, Drawing $5,000 Income from Services $35,000 Rent Expense $12,000 Salaries Expense $8,000 What is the debit balance of the trial balance?

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A cash payment of $130 on account was recorded as a $310 debit to Accounts Payable and a $310 credit to Cash. The necessary correcting entry is

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

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Which of the following is true concerning posting?

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

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J. Forest deposited $60,000 in the bank in the name of the business. The transaction would involve a

Correct AnswerverifiedShow Answer

A ledger account contains a complete record of the transaction activity in that account.

Correct AnswerverifiedShow Answer

If an entry is recorded twice, the error will show up in the trial balance.

Correct AnswerverifiedShow Answer

Clark Clocks had a cash account beginning balance of $30,250 in the month of July. The accountant posted a $1,000 credit on July 3, a $630 credit on July 8, and a $3,150 debit on July 20. What is the balance of Cash in the general ledger?

Correct AnswerverifiedShow Answer

Failure to post an entire transaction will not be reflected in the trial balance.

Correct AnswerverifiedShow Answer

Which of the following is/are not true about a proper journal entry?

Correct AnswerverifiedShow Answer

Homer Services pays the monthly rent, $5,000. The transaction would involve a

Correct AnswerverifiedShow Answer

Use the manual ruling method when amounts have been posted to the wrong account.

Correct AnswerverifiedShow Answer

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