Exam 16: Accounting for a Professional Service Business: The Combination Journal

Businesses might set up special journal columns for different accounts depending on the frequency of their use.

Each entry is posted individually from the General Debit column of the combination journal to the proper general ledger account.

Accounting for revenue when no entry of revenue is made in the accounts until cash is received for the services performed is called

Match the terms with the definitions. -The column in the combination journal where the account number is entered after posting.

From the combination journal, the total of the Cash Debit column is posted as one amount to the debit side of the Cash account and the total of the Cash Credit column is posted as one amount to the credit side of the Cash account.

If the owner has not made any additional investments during the period, the financial statements can be prepared directly from the work sheet.

Under the modified cash basis of accounting, no accounts receivable are entered in the accounting system.

Professional service business enterprises include the following businesses EXCEPT

Match the terms with the definitions. -A method of accounting under which revenues are recorded when earned and expenses are recorded when incurred.

The end-of-period work sheet is used to facilitate

A journal with special and general columns is called a combination journal.

The column totals of the combination journal for Davis Manufacturing are: Cash Debit, $1,500; Cash Credit, $1,328.50; General Debit, $868.20; General Credit, $1,300. If the totals are correct, and the Wages Expense is the only other column, what must be the total of the Wages Expense Debit column?

Match the terms with the definitions. -The column in the combination journal used to credit accounts that are used infrequently.

Match the terms with the definitions. -The column in the combination journal used to enter the account titles for the General Debit and General Credit columns, to identify specific creditors when assets are purchased on account, and to identify amounts forwarded.

Professional service business enterprises include attorneys, physicians, dentists, public accountants, artists, and educators.

Amounts in the general columns of the combination journal are posted individually.

Once an amount has been posted to the general ledger account from the combination journal, what is entered in the "Post. Ref." column of the combination journal?

Frequently used accounts are entered in the General Debit column and the General Credit column of a special journal.

Which of the following would be placed in the "Post. Ref." column to indicate that the amount is not posted individually?

It is NOT necessary to post the total of which of the following columns to the related ledger accounts?