Exam 4: Journalizing and Posting Transactions

The following transactions occurred at Forever Green Lawn Service.Identify which account would be debited and credited to record each transaction.Write the identifying letters in the proper columns.The first transaction has been completed as an example. ? ? A. Cash B. Accounts Receivable C. Supplies D. Equipment E. Accounts Payable F. Fees Income G. Rent Expense H. Salaries Expense I. Telephone Expense

Source documents provide the input for the accounting process.

Entering transactions in a journal is called posting.

In the two-column general journal page below,each capital letter represents a part of a journal entry.Write the proper letter next to the item in the list below to identify the proper part of the journal entry. $\quad\quad\quad\quad\text {GENERAL JOURNAL}\quad\text {Page 1}$ -1. Ledger account number of account credited 2. Month 3. Explanation 4. Title of account debited 5. Year 6. Day of the month 7. Title of account credited 8. Amount of debit 9. Amount of credit 10. Ledger account number of account debited

The main advantage of a two-column account is that it maintains a running balance.

The Item column in the general ledger is used to describe special entries not including the following entries?

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

Prepare a corrected trial balance by changing incorrect amounts and placing each amount in the proper column. Wesley's Towing Service Trial Balance September 30, 20-- Cash 13,000 Accounts Receivable 970 Supplies 200 Prepaid Insurance 2,300 Equipment 10,000 Accounts Payable 5,500 Wesley, Capital 20,500 Wesley, Drawing 320 Repair Fees 9,000 Wages Expense 6,500 Rent Expense 1,400 Advertising Expense 450 Utilities Expense 35,320 35,320 a. Be sure all accounts have been listed with the appropriate debit or credit balance and check column totals. b. The debits to the Cash account are $37,421,and the credits are $34,381. c. A $500 payment to a creditor was entered in the journal,but was not posted to the Accounts Payable account.Cash was properly posted. d. The Advertising Expense total has a transposition error of $90. e. Accounts Receivable contains a slide error.

The payment of a utility bill (like electricity)for the month would include

A complete set of all the accounts used by a business is known as the general ledger.

The journal is commonly referred to as a(n)____________________,because it is here that the first formal accounting record of a transaction is made.

The information in the Posting Reference columns of the journal and the ledger that provides a link between the journal and the ledger is known as a(n)____________________.

A list of all the accounts used by a business is called a trial balance.