Exam 4: Journalizing and Posting Transactions

The Description column of a two-column journal is used to enter the titles of the accounts affected by each transaction,together with a description of the transaction.

The chart of accounts includes the account titles in numerical order.

Prepare general journal entries to record the following transactions.Omit the explanations after each entry. Mar. 1 J. Lynch invested in a neighborhood movie house. Land, $\$ 100,000$ ; building, $\$ 400,000$ ; and equipment, $\$ 50,000$ ; totaling $\$ 550,000$ . 2 Rental expense for the movies shown for the month, $\$ 6,000$ on account. 5 Ticket sales for the month, $\$ 22,000$ cash. 8 Wages paid for the month, $\$ 11,000$ . 12 Purchased a new popcorn machine, $\$ 3,300$ on account. 17 Paid monthly fee to maintenance company, $\$ 2,700$ . 23 Rented the theater to an organization for a night. Billed them $\$ 2,300$ . 30 Paid $\$ 600$ on the amount owed for the new popcorn machine.

Corrections in accounts should be made by

The month in the journal is recorded

The simplest form of journal is one with

Purchase invoices received from suppliers provide information about cash payments.

All transactions must be posted before preparing a trial balance.

The steps in the journalizing process include all of the following EXCEPT

Each entry in the journal affects two or more accounts.

Journalizing does NOT include

Transactions which do not affect the cash account do not need to be entered in the journal,since they do not affect net income or loss.

Corrections in accounts should NOT be

Instead of T accounts,businesses are more likely to use a

Copies of sales tickets or sales invoices issued to customers or clients provide information about

Purchase invoices received from suppliers provide information about

A two-column journal has only two amount columns-one for the amount of the entry and one for the running balance.

When an incorrect entry has been journalized and posted to a wrong account or for the wrong amount,a(n)____________________ is required.

The act of entering transactions in the journal is known as ____________________.

When delivery equipment is purchased on account,the transaction to be entered by the purchaser includes