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

In High Country Ski Rental's trial balance, which type of balance should the company's accountant expect for the type of account indicated?

The chart of accounts is

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. 1. Barry Cain invested $38,000 cash to start an appliance repair business. 2. Hired an employee to 3. Paid two years' rent in advance, $10,800. 4. Paid the worker's weekly wage. 5. Recorded revenue earned and received for the week, $2,900.

The explanation column of the general ledger

All business transactions must be entered first in the general ledger.

Transactions are recorded in alphabetic order in a journal.

A trial balance would only help in detecting which one of the following errors?

The transactions of Molina Information Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided. -------------------------------------------

A number in the reference column in a general journal indicates

The journal provides a chronological record of transactions.

A trial balance

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

When three or more accounts are required in one journal entry, the entry is referred to as a

In High Country Ski Rental's trial balance, which type of balance should the company's accountant expect for the type of account indicated?

Transactions for Joan Jett Company for the month of October are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations. 1. Invested $42,000 cash in the business. 2. Purchased land costing $28,000 for cash. 3. Purchased equipment costing $18,000 for $4,000 cash and the remainder on credit. 4. Purchased supplies on account for $800. 5. Paid $1,200 for a one-year insurance policy. 6. Received $3,500 cash for services performed. 7. Received $4,000 for services previously performed on account. 8. Paid wages to employees for $2,800. 9. Petty withdrew $2,300 cash from the business.

For each transaction given, enter in the tabulation given below a "D" for debit and a "C" for credit to reflect the effect of journal entries on the assets, liabilities, and owner's equity accounts. In some cases there may Transactions: 1. Owner invests cash in the business. 2. Pays insurance in advance for six months. 3. Pays secretary's salary. 4. Purchases office supplies on account. 5. Pays electricity bill. 6. Borrows money from local bank. 7. Makes payment on account. 8. Receives cash due from customers. 9. Provides services on account. 10. Owner withdraws assets from the business.

For each of the following transactions of Neon Garden, identify the account to 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to

Madrid Industries purchased supplies for $1,200. They paid $500 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,200, a credit to a liability account for $700. Which of the following would be the correct way to complete the recording of the transaction?

Which statement is false about posting?