Question 1

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

Accepted Answer

A)  credit to the Cash account. 
B)  debit to the Cash account. 
C)  debit to the Accounts Payable account. 
D)  credit to the Accounts Payable account. 
A)  credit to the Cash account. 
B)  debit to the Cash account. 
C)  debit to the Accounts Payable account. 
D)  credit to the Accounts Payable account.

Question 2

Posting a sales journal to the accounts in the general ledger requires a

Accepted Answer

A)  debit to Cash and a credit to Sales Revenue. 
B)  debit to Sales Revenue and a credit to Inventory. 
C)  debit to Accounts Receivable and a credit to Inventory. 
D)  debit to Accounts Receivable and a credit to Sales Revenue. 
A)  debit to Cash and a credit to Sales Revenue. 
B)  debit to Sales Revenue and a credit to Inventory. 
C)  debit to Accounts Receivable and a credit to Inventory. 
D)  debit to Accounts Receivable and a credit to Sales Revenue.

Question 3

Control accounts are always located in the general ledger.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following economic events would not be recorded in the cash receipts journal?

Accepted Answer

A)  Cash sales of merchandise 
B)  Collections of accounts receivable 
C)  Cash from sale of land 
D)  Cash purchases of merchandise 
A)  Cash sales of merchandise 
B)  Collections of accounts receivable 
C)  Cash from sale of land 
D)  Cash purchases of merchandise

Question 5

A subsidiary ledger is

Accepted Answer

A)  used in place of the general ledger if the general ledger is destroyed or stolen. 
B)  a group of accounts used by branches and subsidiaries of a corporate business. 
C)  a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger. 
D)  used to post excess transactions if a general ledger account becomes full during an accounting period. 
A)  used in place of the general ledger if the general ledger is destroyed or stolen. 
B)  a group of accounts used by branches and subsidiaries of a corporate business. 
C)  a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger. 
D)  used to post excess transactions if a general ledger account becomes full during an accounting period.

Question 6

An advantage of using a subsidiary ledger is that one employee must post to both the subsidiary ledger and the general ledger.

Accepted Answer

A) True 
 B)False

Question 7

The amounts appearing in the Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 8

If a certain type of transaction occurs with great frequency, it is more efficient to create a ______________ to record that type of transaction.

Accepted Answer

The answer of If a certain type of transaction occurs...

Question 9

Shown below is a page from a special journal.
1. What is the name of this journal?
2. Give an explanation for each of the transactions in this journal.
3. Explain the following:
(a) the numbers under the bottom lines.
(b) the checks entered into the Ref. column.
(c) the numbers 113 and 416 in the Ref. column.
(d) the (x) below the Other Accounts column.

Accepted Answer

1. Cash receipts journal.
2. May 27- Ted

Question 10

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

Accepted Answer

A) True 
 B)False

Question 11

Special journals are used to record unique transactions which do not occur very often.

Accepted Answer

A) True 
 B)False

Question 12

The one characteristic that all entries recorded in a cash receipts journal have in common is

Accepted Answer

A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account. 
A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account.

Question 13

Sandy Company uses both special journals and a general journal. The company accountant made the following errors during July.
1. Incorrectly added the credit entries in a customer's account in the accounts receivable subsidiary ledger. The total was listed as $2,690; it should have been $2,790.
2. A remittance of $400 from Tom Short was correctly recorded in the cash receipts journal, but the amount was posted incorrectly to the account of customer Will Short in the subsidiary ledger.
3. A purchase of merchandise on account from Easton Company for $1,000 was incorrectly entered in the purchases journal at $10,000.
4. In the sales journal, the entries were incorrectly added for the month. The monthly total was listed as $24,620; it should have been $24,260.
Instructions
Indicate how each of the above errors might be discovered.

Accepted Answer

1. The subsidiary ledger will not agree

Question 14

Entries in a sales journal

Accepted Answer

A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit. 
A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit.

Question 15

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Accepted Answer

A) True 
 B)False

Question 16

Transaction amounts recorded in the general journal are never posted to accounts in the subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 17

If a transaction cannot be recorded in a special journal

Accepted Answer

A)  the company must refuse to enter into the transaction. 
B)  it is recorded in the general journal. 
C)  it is recorded directly in the accounts in the general ledger. 
D)  it is recorded as an adjustment on the worksheet. 
A)  the company must refuse to enter into the transaction. 
B)  it is recorded in the general journal. 
C)  it is recorded directly in the accounts in the general ledger. 
D)  it is recorded as an adjustment on the worksheet.

Question 18

Which of the following is not a special journal?

Accepted Answer

A)  Sales journal 
B)  Purchases journal 
C)  General journal 
D)  Cash receipts journal 
A)  Sales journal 
B)  Purchases journal 
C)  General journal 
D)  Cash receipts journal

Question 19

Circle the correct answer to each situation.

Accepted Answer

(a) Yes, No, No (d)

Question 20

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Accepted Answer

A) True 
 B)False

Exam 29: Subsidiary Ledgers and Special Journals

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

Posting a sales journal to the accounts in the general ledger requires a

Control accounts are always located in the general ledger.

Which of the following economic events would not be recorded in the cash receipts journal?

A subsidiary ledger is

An advantage of using a subsidiary ledger is that one employee must post to both the subsidiary ledger and the general ledger.

The amounts appearing in the Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

If a certain type of transaction occurs with great frequency, it is more efficient to create a ______________ to record that type of transaction.

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

Special journals are used to record unique transactions which do not occur very often.

The one characteristic that all entries recorded in a cash receipts journal have in common is

Entries in a sales journal

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Transaction amounts recorded in the general journal are never posted to accounts in the subsidiary ledger.

If a transaction cannot be recorded in a special journal

Which of the following is not a special journal?

Circle the correct answer to each situation.

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Other Significant Liabilities

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