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On December 1, the Accounts Receivable account had a $22,000 debit balance.
During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers.
After posting these transaction, the balance in the Accounts Receivable account on December 31 is:
 
a $23,700 credit balance.
a $24,700 debit balance.
a $19,300 debit balance
a $24,700 credit balance.
   
On September 1, Lazy A, Inc. paid $2,200 for a one year insurance policy. The journal entry to record this transaction is:
                                                 
Prepaid Insurance       $          2,200                
Insurance Expense                              $ 2,200
                                                 
Prepaid Insurance      $ 2,200                         
Cash                                                    $ 2,200
                                                 
Insurance Expense      $          2,200                
Cash                             $          2,200
                                                 
Cash     $          2,200                
Prepaid Insurance                               $ 2,200
   
The journal entry to record the payment of the monthly rent would include:
 
a debit to Rent Expense and a credit to Capital.
a debit to Capital and a credit to Cash.
a debit to Rent Expense and a credit to Accounts Receivable.
a debit to Rent Expense and a credit to Cash
   
 Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?
 
Debit Accounts Receivable $1,350; credit Cash $1,350
Debit Cash $1,350; credit Accounts Receivable $1,350
Debit Accounts Receivable $1,350; credit Fees Income $1,350
Debit Fees Income $1,350; credit Cash $1,350
   
Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place are called:
 
ledgers
accounts
source documents
debits
   
 The Accounts Payable account has a $3,000 credit balance. An entry for the payment of $1,000 on the amount owed is recorded and posted.
The new balance of the Accounts Payable account is:
 
a $2,000 credit balance
a $4,000 credit balance.
a $2,000 debit balance.
a $1,000 debit balance.
   
The process of transferring the data from the journal to the general ledger is called:
 
transposing
footing
journalizing
posting
   
 The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is:
 
a $3,000 debit balance.
a $27,000 debit balance.
a $13,000 debit balance.
a $17,000 debit balance
   
The journal entry to record a payment made in January for rent for the months of February and March would include:
 
a debit to Rent Expense, and a credit to Sue Snow, Capital.
a debit to Prepaid Rent and a credit to Cash
a debit to Rent Expense and a credit to Cash.
a debit to Sue Snow, Drawing and a credit to Rent Expense.
   
When an entry is made in the general journal,
 
assets should be listed first.
accounts to be debited should be listed first
accounts to be increased should be listed first.
accounts may be listed in any order.
   
A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days,
the journal entry to record the purchase of equipment would include:
 
a debit to Equipment for $15,000 and a credit to Cash for $15,000.
a debit to Equipment for $1,000 and a credit to Cash for $1,000.
a debit to Equipment for $14,000 and a credit to Accounts Payable for $14,000.
a debit to Equipment for $15,000, a credit to Cash for $1,000 and a credit to Accounts Payable for $14,000
   
 A purchase of office equipment for cash is journalized as:
 
Debit Office Equipment; Credit Accounts Payable
Debit Cash; Credit Office Equipment
Debit Equipment Expense; Credit Cash
Debit Office Equipment; Credit Cash
   
  Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:
 
Debit Utilities Expense; Credit Accounts Payable
Debit Cash; Credit Utilities Expense
Debit Utilities Expense; Credit Cash
Debit Accounts Payable; Credit Cash
   
  The Posting Reference column of a journal is used to:
 
record the date on which an amount is posted to a ledger account.
record the number of the ledger account to which the information is posted
record the number of amounts posted to that ledger account since the beginning of the current accounting period.
record the page number of the ledger account.
   
  The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include:
 
a debit to Equipment for $100 and a credit to Cash for $100.
a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400
a debit to Equipment for $100 and a credit to Accounts Payable for $400.
debit to Equipment for $500 and a credit to Cash for $500.
   
  Which of the following statements is CORRECT?
 
The general ledger contains the accounts that are used to prepare the financial statements
Some companies use the general ledger instead of a general journal.
When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger.
When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.
   
In which of the following transactions would Utilities Expense be debited:
 
the company received a bill for utilities to be paid the following month
the company paid a utility bill on account
   
 On July 3, the ABC Company received $865 in cash on account from customers. The correct journal entry to record this transaction is:
 
debit Cash, $865; credit Income from Services, $865
debit Cash, $865; credit Accounts Payable, $865
debit Accounts Receivable, $865; credit Cash, $865
debit Cash, $865; credit Accounts Receivable, $865
   
Transactions in a journal are initially recorded in:
 
chronological order
alphabetical order.
dollar amount order.
randomly.
   
 If a journal entry that contains an error has already been posted,
 
The incorrect items should be erased and replaced with the correct data.
The journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it.
a correcting entry should be journalized and posted
the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger.
   
Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.
 
True
   
The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:

Accumulated Depreciation           $3,200
Fees Earned                                        17,400
Depreciation Expense                     1,300
Insurance Expense                           400
Prepaid Insurance                            4,800
Supplies                                               900
Supplies Expense                              3,800

Net income for the period is
 
$11,900
   
Which of the following accounts will be debited in the closing entry at the end of the year?
 
Fees Earned
   
Unearned fees appear on the
 
balance sheet as a current liability
   
Accumulated Depreciation is a permanent account.
 
True
   
Entries required to close the balances of the temporary accounts at the end of the period are called final entries.
 
False
   
The accumulated depreciation account is closed to the drawing account.
 
False
   
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
 
the adjusted trial balance reflects the updated balances in the accounts after the adjusting entries.
   
On the balance sheet, owner's equity is
 
added to liabilities and the two are equal to assets
   
The usual presentation of the statement of owner's equity is (1) Beginning capital, (2) Net income or loss, (3) Drawing, (4) Owner's contributions, and (5) Ending capital.
 
False
   
Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.
 
False
   
The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:

Accumulated Depreciation                           $2,027
Fees Earned                                                        17,246
Depreciation Expense                                     1,350
Insurance Expense                                           624
Prepaid Insurance                                            4,310
Supplies                                                               1,574
Supplies Expense                                              3,972

Net income for the period is
 
11,300
   
The balance sheet accounts are referred to as real or permanent accounts.
 
True
   
Which of the following accounts ordinarily appears in the post-closing trial balance?
 
Unearned Rent
   
The difference between a classified balance sheet and one that is notclassified is that the classified one has subheadings.
 
True
   
Prepaid insurance is reported on the balance sheet as a
 
current asset
   
Capital and drawing are reported in the Owner's Equity section of the balance sheet.
 
False
   
The income statement will present
 
Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed last
   
Assets, liabilities, and owner's capital are real accounts and do not get closed at the end of the period.
 
True
   
When errors are made in accounting records, they should be adjusted by making a _________, a journal entry
made to correct the erroneous entry.
 
Correcting Entry
   
The ledger is called the __________ because the ledger is the last place that accounting transactions are recorded.
 
Record of final entry
   
What is recorded in the Posting Reference column of a general journal?
 
The general ledger account number
   
Why is the ledger called the "record of final entry"?
 
It is the last accounting record in which transactions are recorded.
   
How do you correct an incorrect journal entry that has not been posted?
Errors made in journal entries whether posted or not must be made through correcting entries.
   
The general journal is the ______. The general ledger is the ______.
 
Record of Original Entry
Record of Final Entry
   
The second step in the accounting cycle is to:
 
journalize the transaction
   
If a journal entry that contains an error has been posted, erase the entry and change the posting in the ledger accounts.
 
False
   
Once an incorrect journal entry has been posted, the incorrect amounts remain in the general ledger accounts.
 
False