Exam 4: The Recording Process: the Journal, the Ledger, and the Trial Balance

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. 1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased $500 of supplies on credit. 3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000, note payable. 4. Real estate commissions billed to clients amount to $4,000. 5. Paid $800 in cash for the current month's rent. 6. Paid $200 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,500 cash for office salaries and wages. 9. Li withdrew $1,800 from the business for living expenses. 10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4.

The name given to entering transaction data in the journal is

Some of the following errors would cause the debit and credit columns of the trial balance to have unequal totals. For each of the four cases, state whether the error would cause unequal totals in the trial balance. If the error causes unequal totals, indicate the amount of difference between the columns and state whether the debit or credit is larger. Each case is to 1. A payment of $600 to a creditor was recorded by a debit to Accounts Payable of $60 and a credit to Cash of $600. 2. A $450 payment for a printer was recorded by a debit to Equipment of $45 and a credit to Cash for $45. 3. An account receivable in the amount of $3,000 was collected in full. The collection was recorded by a debit to Cash for $3,000 and a debit to Accounts Payable for $3,000. 4. An account payable was paid by issuing a check for $600. The payment was recorded by debiting Accounts Payable $600 and crediting Accounts Receivable $600.

Business documents can provide evidence that a transaction has occurred.

The chart of accounts is a special ledger used in accounting systems.

Prepare a corrected trial balance for Howard Company. All accounts should have a normal balance.

The chart of accounts is a

Sara Bernheat withdraws $700 cash from her business for personal use. The journal entry for this transaction will include a debit of $700 to

In Yani's Gyros trial balance, which type of balance should Yani not expect for the type of account indicated?

In a trial balance, what indicates that an amount is a final sum?

The entire group of accounts maintained by a company is called the

In High Country Ski Rental's trial balance, which type of balance should the company's accountant not expect for the type of account indicated?

These accounts are among the accounts in Barrelhouse Pub's trial balance: Cash \ 13,000 Accounts Payable 6,000 Owner's Capital 37,000 Owner's Drawing 4,000 Food Revenue 70,000 Utilities Expense 3,000 Based on these accounts only, what are the total debits in Barrelhouse Pub's trial balance?

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

A new account is opened for each transaction entered into by a business firm.

On October 3, Ken Steele, a carpenter, received a cash payment for services previously billed to a client. Ken paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the journal entries will include a

The trial balance will balance if a purchase of Equipment is mistakenly debited to Supplies.

A journal is not useful for

The basic steps in the recording process are: _______________ each transaction, enter the transaction in a ________________, and transfer the _______________ information to appropriate accounts in the ________________.