67) Journalize, in proper form, the following transactions that occurred during September. Omit
explanations.
September
5 Michele invested $23,000 cash and $10,000 of equipment into her new business
10 Paid three months’ rent in advance, $2,400
23 Withdrew $400 from the business
24 Billed client for services rendered, $18,000
68) Cooper Company began business in June. Prepare the following transactions for June. Omit
explanations.
June
2 Cooper invested $3,000 cash and $1,000 equipment into her new business
12 Billed customer for services performed, $600
16 Purchased equipment on account, $200
20 Received one-half amount due from June 12
25 Cooper withdrew cash for personal use, $200
69) Record the following selected transactions for January in a two-column journal, identifying each entry
by letter:
(a) Earned $7,000 fees; customer will pay later.
(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
(c) Paid $3,000 for rent for January.
(d) Purchased $2,500 of supplies on account.
(e) A. Allen $1,000 investment in the company.
(f) Received $7,000 in cash for fees earned previously.
(g) Paid $1,200 to creditors on account.
(h) Paid wages of $6,250.
(i) Received $7,150 from customers on account.
(j) A. Allen withdrawal of $1,750.
24
70) Post the following transaction to the ledger of Wiley Services. The partial chart of accounts for
Thompson’s Company is:
111 Cash
121 Accounts Receivable
211 Accounts Payable
411 Service Fees
GENERAL JOURNAL Page 1
Date
Acct. Titles and Description
PR
Debit
Credit
May
1
Accounts Receivable
10,000
Service Fees
10,000
Billed customer
May
5
Accounts Payable
3,000
Cash
3,000
Paid amount due
Cash Account 111
Date
Explanation
PR
Credit
Debit
Balance
Credit
Balance
Accounts Receivable Account 121
Date
Explanation
PR
Credit
Debit
Balance
Credit
Balance
Accounts Payable Account 211
Date
Explanation
PR
Credit
Debit
Balance
Credit
Balance
Service Fees Account 411
Date
Explanation
PR
Credit
Debit
Balance
Credit
Balance
71) Define and discuss a calendar year, accounting period, and fiscal year.
72) Provide an explanation for the following journal entries:
a) Prepaid Rent debited, Cash credited
b) Office supplies debited, Accounts Payable credited
c) Cash debited, Capital credited
d) Withdrawals debited, Cash credited
e) Accounts Payable debited, Cash credited
73) Complete the following entries by using a “debit” or “credit.”
a) Received payment from a customer. Cash would have a: ________
b) Owner makes an investment of equipment. Capital would have a: ________
c) Paid rent in advance. Prepaid Rent would have a: ________
d) Billed a customer for services rendered. Revenue would have a: ________
e) Paid an advertising bill received last month. Cash would have a: ________
f) Owner withdrew cash. Withdrawals would have a: ________
74) What are interim financial statements?
75) Complete the following questions based on the journal entry below:
GENERAL JOURNAL Page 1
Date
Acct. Titles and Description
PR
Debit
Credit
May
1
Cash
110
11,000
Capital
300
11,000
a) Date of Journal entry: _______________
b) Name of account debited: _______________
c) Name of account credited: _______________
d) Provide an explanation for this entry: _______________
e) Page of Journal: _______________
f) Account number for Cash: _______________
g) Account number for Capital: _______________
76) Describe the difference in information contained in the general journal vs. the general ledger.
3.2 Learning Objective 3-2
1) The purpose of posting is to:
A) list the transactions in chronological order in the journal.
B) provide an explanation of the transaction.
C) update the account balances in the ledger.
D) correct a previous entry.
2) Posting is performed by transferring information from the journal to the:
A) ledger.
B) trial balance.
C) balance sheet.
D) income statement.
3) The posting reference column in the ledger is:
A) used to record the journal and page number the transactions originated.
B) used to record the ledger number.
C) used to record the date.
D) not used.
4) A credit to a liability account was posted to an owner’s equity account. This would cause:
A) assets to be overstated.
B) liabilities to be understated.
C) owner’s equity to be understated.
D) net income to be overstated.
5) A credit to an asset account was posted to a revenue account. This would cause:
A) assets to be understated.
B) liabilities to be understated.
C) capital to be understated.
D) revenue to be overstated
6) A credit to an asset account was posted to an expense account. This would cause:
A) assets to be overstated.
B) liabilities to be understated.
C) capital to be understated.
D) expenses to be overstated.
7) A debit to an expense account was posted to an asset account. This would cause:
A) assets to be understated.
B) liabilities to be understated.
C) capital to be understated.
D) expenses to be understated.
8) A debit to the Capital account was posted to an expense account. This would cause:
A) assets to be overstated.
B) liabilities to be understated.
C) capital to be overstated.
D) expense to be understated.
9) A credit to an asset account was posted to a liability account. This would cause:
A) assets to be understated.
B) liabilities to be overstated.
C) capital to be overstated.
D) revenue to be overstated.
10) A debit to the Capital account was posted to a revenue account. This would cause:
A) assets to be understated.
B) liabilities to be overstated.
C) capital to be understated.
D) revenue to be understated.
11) A debit to a revenue account was posted to an expense account. This would cause:
A) expenses to be overstated.
B) revenue to be understated.
C) expenses to be understated.
D) capital to be overstated.
12) A debit to a liability account was posted to an expense account. This would cause:
A) assets to be overstated.
B) liabilities to be understated.
C) owner’s equity to be overstated.
D) expenses to be overstated.
13) A debit to a liability account was posted to a revenue account. This would cause:
A) assets to be overstated.
B) liabilities to be overstated.
C) capital to be overstated.
D) revenue to be overstated.
14) The posting reference column on the general journal:
A) shows which transactions have been posted to the ledger.
B) displays to which accounts the transactions have been posted.
C) allows us to cross reference to the general ledger.
D) All of the above are correct.
15) The posting reference column in the journal is used for:
A) recording the source documents identification number.
B) recording the account number to which the entry was posted.
C) recording the time when the entry was posted.
D) recording the initials of the person who did the posting.
16) The proper sequence used in recording a business transaction is:
A) analyze, post, journalize, record the account balance, and complete the reference column in the
journal.
B) analyze, journalize, post, record the account balance, and complete the reference column in the journal.
C) analyze, journalize, post, complete the reference column in the journal, and record the account balance.
D) journalize, analyze, post, record the account balance, and complete the reference column in the
journal.
17) Posting is the process of transferring information from the journal to the trial balance.
18) Posting is the process of entering amounts in the journal.
19) The process of transferring the data from the journal to the ledger accounts is called posting.