Type
Quiz
Book Title
College Accounting: Chapters 1-30 13th Edition
ISBN 13
978-0078025273

978-0078025273 Test Bank Chapter 4 Part 2

April 17, 2020
Chapter 04 - The General Journal and the General Ledger
64. Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal
entry debited the Office Equipment account rather than the Shop Equipment account. What
correcting entry would be necessary?
65. Which of the following statements is correct?
66. For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit
and Credit columns to indicate the effects of each on the account balance. The first row has
been completed for reference.
67. For each of the accounts listed below, enter the words, Increase or Decrease, the Debit and
Credit columns to indicate the effects of each on the account balance. The first row has been
completed for reference.
68. For each of the accounts listed below, enter the words, Increase or Decrease, the Debit and
69. Indicate how each of the following would be reflected in the journal entry required to
record the effects described by using debit or credit to indicate the increase or decrease in
each affected account.
70. Indicate how each of the following would be reflected in the journal entry required to
record the effects described by using debit or credit to indicate the increase or decrease in
each affected account.
71. Indicate how each of the following would be reflected in the journal entry required to
record the effects described by using debit or credit to indicate the increase or decrease in
each affected account.
72. Determine the accounts and amounts to be debited and credited for the following
transactions for Madison's Clock Repair.
A. Purchased new equipment for $1,700 by issuing a check for $1,000 as a down payment
with the balance due in 30 days.
B. Issued checks for $2,400 to pay the employees their monthly salaries.
C. Issued a check for $700 to pay a creditor on account.
D. Purchased supplies for $200 cash.
E. Provided services for $6,800 on credit.
F. Returned damaged supplies and received a $50 cash refund.
G. Issued a check for $100 to pay the monthly telephone bill.
73. Determine the accounts and amounts to be debited and credited for the following
transactions for Folk Furniture Repair.
A. Issued a check for $950 to pay the monthly rent.
B. Purchased $130 worth of supplies on credit.
C. The owner made an additional investment of $5,000 in cash.
D. Sent a $75 check to the utility company to pay the monthly bill.
E. Performed services for cash in the amount of $1,200.
F. Provided services on credit in the amount of $800.
G. Purchased new equipment for $300 and paid for it immediately by check.
H. Issued a $1,000 check to pay a creditor on account.
I. Collected $500 from credit customers.
74. Determine the accounts and amounts to be debited and credited for the following
transactions for Monroe's Auto Repair.
A. Marilyn Monroe invested $50,000 in cash to start the firm
B. Issued check for $4,000 to pay the rent for current month
C. Purchased an automobile that will be used to visit clients; issued check for $32,500 in full
payment
D. Purchased supplies for $800; paid immediately by check
E. Purchased office equipment for $18,500 on credit from Denton, Inc.; received invoice,
payable in 30 days
F. Performed services for $2,580 in cash
G. Returned damaged supplies for a cash refund of $50
H. Issued check for $15,600 to Denton, Inc., as payment on account
I. Paid $120 for monthly telephone bill by check
J. Withdrew $500 in cash for personal expenses
75. The accounts with identification letters for Orly Delivery Services are listed below.
During the current month, the company completed the transactions listed below. Indicate the
appropriate journal entry that needs to be recorded for each transaction by providing the
account letter and amount. Some entries may need more than one debit and/or more than one
credit. The first transaction is completed as an example.
76. The accounts with identification letters for Smart Delivery Services are listed below.
During the current month, the company completed the transactions listed below. Indicate the
appropriate journal entry that needs to be recorded for each transaction by providing the
account letter and amount. Some entries may need more than one debit and/or more than one
credit. The first transaction is completed as an example.
77. The accounts with identification letters for Sealy Delivery Services are listed below.
During the current month, the company completed the transactions listed below. Indicate the
appropriate journal entry that needs to be recorded for each transaction by providing the
account letter and amount. Some entries may need more than one debit and/or more than one
credit. The first transaction is completed as an example.
64. bertrand inc. purchased some shop equipment for $4,500 in cash. by mistake, the journal entry debited the office equipment account rather than the shop equipment account. what correcting entry would be necessary? a. debit office equipment $4,500; credit shop equipment $4,500 b. debit shop equipment $4,500; credit office equipment $4,500 c. debit cash $4,500; credit shop equipment $4,500 d. debit office equipment $4,500; credit cash $4,500 65. which of the following statements is correct? a. all errors made in journal entries should be corrected by the preparation of a correcting journal entry. b. if an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry. c. if an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it. d. if an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry. 72. determine the accounts and amounts to be debited and credited for the following transactions for madison's clock repair. a. purchased new equipment for $1,700 by issuing a check for $1,000 as a down payment with the balance due in 30 days. b. issued checks for $2,400 to pay the employees their monthly salaries. c. issued a check for $700 to pay a creditor on account. d. purchased supplies for $200 cash. e. provided services for $6,800 on credit. f. returned damaged supplies and received a $50 cash refund. g. issued a check for $100 to pay the monthly telephone bill. a. equipment (dr. $1,700); cash (cr. $1,000) and accounts payable (cr. $700) b. salaries expense (dr. $2,400); cash (cr. $2,400) c. accounts payable (dr. $700); cash (cr. $700) d. supplies (dr. $200); cash (cr. $200) e. accounts receivable (dr. $6,800); fees income (cr. $6,800) f. cash (dr. $50); supplies (cr. $50) g. telephone expense (dr. $100); cash (cr. $100) 73. determine the accounts and amounts to be debited and credited for the following transactions for folk furniture repair. a. issued a check for $950 to pay the monthly rent. b. purchased $130 worth of supplies on credit. c. the owner made an additional investment of $5,000 in cash. d. sent a $75 check to the utility company to pay the monthly bill. e. performed services for cash in the amount of $1,200. f. provided services on credit in the amount of $800. g. purchased new equipment for $300 and paid for it immediately by check. h. issued a $1,000 check to pay a creditor on account. i. collected $500 from credit customers. a. rent expense (dr.$950); cash (cr.$950) b. supplies (dr.$130); accounts payable (cr.$130) c. cash (dr.$5,000); folk, capital (cr.$5,000) d. utilities expense (dr.$75); cash (cr.$75) e. cash (dr.$1,200); fees income (cr.$1,200) f. accounts receivable (dr.$800); fees income (cr.$800) g. equipment (dr.$300); cash (cr.$300) h. accounts payable (dr.$1,000 ); cash (cr.$1,000) i. cash (dr.$500); accounts receivable (cr.$500) 74. determine the accounts and amounts to be debited and credited for the following transactions for monroe's auto repair. a. marilyn monroe invested $50,000 in cash to start the firm b. issued check for $4,000 to pay the rent for current month c. purchased an automobile that will be used to visit clients; issued check for $32,500 in full payment d. purchased supplies for $800; paid immediately by check e. purchased office equipment for $18,500 on credit from denton, inc.; received invoice, payable in 30 days f. performed services for $2,580 in cash g. returned damaged supplies for a cash refund of $50 h. issued check for $15,600 to denton, inc., as payment on account i. paid $120 for monthly telephone bill by check j. withdrew $500 in cash for personal expenses a. cash (dr. $50,000); marilyn monroe, capital (cr. $50,000) b. rent expense (dr. $4,000); cash (cr. $4,000) c. automobile (dr. $32,500); cash (cr. $32,500) d. supplies (dr. $800); cash (cr. $800) e. office equipment (dr. $18,500); accounts payable (cr. $18,500) f. cash (dr. $2,580); fees income (cr. $2,580) g. cash (dr. $50); supplies (cr. $50) h. accounts payable (dr. $15,600); cash (cr. $15,600) i. telephone expense (dr. $120); cash (cr. $120) j. marilyn monroe, drawing (dr. $500); cash (cr. $500)

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