20) A running balance is maintained in the ledger after each transaction is posted.
34
21) Post the following transactions to the ledger of Jason Company. The partial chart of accounts of Jason
Company is as follows:
111 Cash
121 Equipment
211 Accounts Payable
311 Jason, Capital
GENERAL JOURNAL Page 1
Date
Acct. Titles and Description
PR
Debit
Credit
April
1
Cash
14,000
Jason, Capital
14,000
Cash investment
April
5
Equipment
4,000
Cash
1,000
Accounts Payable
3,000
Purchased equipment
Cash Account 111
Date
Explanation
PR
Debit
Debit
Balance
Credit
Balance
Equipment Account 121
Date
Explanation
PR
Debit
Debit
Balance
Credit
Balance
Accounts Payable Account 211
Date
Explanation
PR
Debit
Debit
Balance
Credit
Balance
Jason, Capital Account 311
Date
Explanation
PR
Debit
Debit
Balance
Credit
Balance
1) The informal listing of the ledger accounts and their balances in the ledger to aid in providing the
equality of debits and credits is the:
A) journal.
B) ledger.
C) income statement.
D) trial balance.
2) If the debit and credit totals of a trial balance are not equal, it could be due to the following type of
error:
A) Failure to record a transaction
B) Recording the same erroneous amount for both the debit and the credit sides of a transaction
C) Incorrectly calculating the debit side of the trial balance
D) Recording the same transaction more than once
3) If the business records a number as 179 and it should be 197, this error would be called:
A) rearrangement.
B) transposition.
C) slide.
D) None of the above
4) If a trial balance is not equal, you should first:
A) re-compute the ledger balances.
B) trace all postings.
C) re-add the trial balance and calculate the difference.
D) look for missing transactions.
5) The proper format for a journal entry includes all of the following, except:
A) the total amounts of debits must equal the total amount of credits.
B) skip a line between transactions.
C) the credit portion of the transaction is always first.
D) listed in chronological order.
6) Which of the following errors would cause the trial balance to be out of balance?
A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash
for $57.
B) The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to
Accounts Payable, $100.
C) The collection of an account was not recorded.
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and
a credit to Cash for $4,000.
7) Which of the following transactions would cause the trial balance to be out of balance?
A) A debit to Cash and a debit to Equipment for the same amount
B) A credit to Cash and a debit to Supplies for the same amount
C) A debit to Accounts Receivable and a credit to Accounting Fees for the same amount
D) All of these answers are correct.
8) An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club
employee. When the employee returns the amount of the overpayment, Plum Hollow should make which
of the following entries?
A) Cash, debit; Wages Expense, credit
B) Wages Payable, debit; Wages Expense, credit
C) Wages Expense, debit; Cash, credit
D) Wages Expense, debit; Wages Payable, credit
9) Which of the following accounts would be credited in a proper journal entry?
A) Cash when it is increased
B) Service Fees when it is increased
C) Capital when it is decreased
D) Accounts Payable when it is decreased
10) An $900 check written for supplies was journalized as $180. The entry to correct this error is:
A) debit Supplies, $720; credit Cash, $720.
B) debit Cash, $720; credit Supplies, $720.
C) debit Supplies, $180; credit Cash, $180.
D) debit Cash, $180; credit Cash, $180.
11) Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:
A) all of the information from the journal was correctly transferred to the ledger.
B) all accounts have their correct balances in the ledger.
C) only the ledger is accurate; the journal may be incorrect.
D) only that the debit dollar amounts equal the credit dollar amounts.
12) In preparing the trial balance of the K&L’s Bridal Service, the Withdrawal account (which had a
normal balance in the general ledger) was listed as a credit for $400. What will be the difference between
the debit and credit sides of the trial balance?
A) $150
B) $200
C) $300
D) $800
13) The trial balance:
A) includes all accounts with a balance in the ledger.
B) includes assets, liabilities, capital, withdrawals, revenues and expenses.
C) ensures that debits equal credits.
D) All of the above are correct.
14) To correct an error made in the journal (prior to posting in the ledger):
A) erase the error and write the correct entry.
B) line out the incorrect portion of the entry and write in the correction.
C) ignore the error, it will correct itself in the next accounting period.
D) write a new journal entry correcting the original entry.
15) When the trial balance includes a debit column total of $10,350 and a credit column total of $11,350, it
is probable that:
A) a transposition error occurred.
B) a $500 debit was recorded twice.
C) a $500 credit was recorded twice.
D) a $500 debit was recorded as a credit.
16) A trial balance is a list of the accounts and account numbers.
17) The trial balance proves the equality of debits and credits.
18) A slide is evenly divisible by the number 8.
19) The trial balance listing is in the same order as the chart of accounts.
20) Journalizing a transaction with both the debit and the credit for $75 instead of $57 will cause the trial
balance to be out of balance.
21) If the trial balance is in balance, it proves that all transactions were properly recorded.
22) Correctly posting a transaction twice will cause the trial balance totals to be unequal.
23) A slide is an error that results when zeros have been added or deleted when writing an amount.
Example: 30,000 is written as 3,000.
24) The order of the flow of accounting data is to (1) record in a journal, (2) post in a ledger, (3) prepare a
trial balance.
25) The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.
26) All nine transactions for Ross Realty for June, the first month of operation, are recorded in the
following T accounts:
Prepare a trial balance, listing the accounts and their balance in proper order.
27) The following trial balance has been improperly completed. All the accounts have normal balances.
Prepare a corrected trial balance in good form.
Danielson Online Company
Trial Balance
March 31, 200x
Salaries Expense 200
Rent Expense 250
Accounts Receivable 40
Equipment 2,250
Danielson, Capital 1,800
Danielson, Withdrawals 900
Service Fees 2050
Accounts Payable 2,000
Cash 2,210
Totals 6140 5560
28) Julie, a new employee, is not sure of the effect the following unrelated situations would have on the
accuracy of the financial statements. Identify the account(s) that are affected and if the trial balance would
balance.
a. Equipment was purchased for $1,000 cash. The debit was recorded properly, but the credit was
omitted.
b. A debit to Cash for $250 was posted as $2,500; the credit was posted correctly.
c. A purchase of supplies on account for $50 was posted as a debit to Supplies and a credit to Cash.