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

The chart of accounts used by Notwist Copy Company is listed below. You are to indicate the proper accounts to be debited and credited when preparing journal entries for the following transactions by writing the account number(s) in the appropriate boxes.

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

On August 13, 2022, Accounting Services Co. purchased office equipment for $1,700 and office supplies of $300 on account. Which of the following journal entries is recorded correctly and in the standard format?

After a transaction has been posted, the reference column in the journal should not be blank.

Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that ensure that the ledger accounts are correct? Explain.

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

The Ref column in a journal stands for _______________, and is left _______________ when the journal entry is made.

A journal provides

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries as a result of posting journal entries to those accounts.

During a study session, a classmate states that it is not necessary to make journal entries and then post them to the ledger. She states that it is sufficient to analyze the transaction and simply record the information in T-accounts. What is your response to this statement? Be brief, yet concise.

On June 1, 2022, Ben Casey buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

A three column form of account is so named because it has columns for

Phast Mail Service purchased equipment for $2,000. Phast paid $500 in cash and signed a note for the balance. Phast debited the Equipment account, credited Cash and

TNT has the following transactions during April of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis.

For the Chicago Huskies, the debit total in the trial balance differs from the credit total, and the difference is divisible evenly by 9. The company should first

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

The first step in the recording process is to

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.