Chapter 3, Problem 1M

RECORDING TRANSACTIONS IN THE PROPER JOURNAL Identify the journal (sales, cash receipts, purchases, cash payments, or general) in which each of the following transactions should be recorded: (a) Sold merchandise on account. (b) Purchased delivery truck on account for use in the business. (c) Received payment from customer on account. (d) Purchased merchandise on account. (e) Issued check in payment of electric bill. (f) Recorded depreciation on factory building.

Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Event External event Internal event Transaction Source document Account Chart of accounts General ledger Debit Credit Double-entry system Journal Posting Journalizing General journal Trial balance A numerical list of all accounts used by a company. A list of each account and its balance; used to prove equality of debits and credits. A happening of consequence to an entity. An entry on the right side of an account. An event occurring entirely within an entity. A piece of paper that is used as evidence to record a transaction. The act of recording journal entries. An entry on the left side of an account. The process of transferring amounts from a journal to the ledger accounts. An event involving interaction between an entity and its environment. A record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders equity. A book, a file, a hard drive, or another device containing all of the accounts. A chronological record of transactions. Any event that is recognized in a set of financial statements. The journal used in place of a specialized journal. A system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance.

A Company pays its suppliers for inventory that it previously purchased. The entry to record that transaction should be: Group of answer choices A debit to accounts payable and a credit to cash A debit to cash and a credit to accounts payable

29)Revenue is properly recognized:  (Hint: What is Revenue Recognition principle?) Group of answer choices At the end of the accounting period. Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price. Only if the transaction creates an account receivable. When the customer's order is received.

Multiple choice 1. A list showing the amount due to each supplier as of a specified date is known as the A. Schedule of accounts receivable B. Trial balance C. Balance sheet D. Schedule of accounts payable 2. When purchasing merchandise for resale for cash, record the transaction in the A. Sales journal B. Cash receipts journal C. Cash payments journal D. Purchases journal

Journalize the entries to record the transaction of Amsterdam supply Co. refer to the chart of accounts for exact wording of account titles. Chart of accounts Amsterdam supply corporations Assets - cash. account receivable empire corporation. Account receivable equinxo Corporation. I can’t receivable Targhee corporation. Account receivable vista corporation. Notes receivable. Inventory. Estimate return inventory. Office supplies. Store supplies. Prepaid insurance. Land. Store equipment. Accumulated depreciation Store equipment. Office equipment. Accumulated depreciation Office equipment. Liabilities Account payable. Salaries payable. Sale tax payable. Customer refund payable. Notes payable. Equity Common stock. Retained earnings. Dividends. Revenu Sales. Interest revenue. Expenses Cost of goods sold. Delivery expense. Advertising expense. Depreciation expense store equipment. Depreciation expense office equipment. Salaries expense. Rent expense. Insurance expense. Store…

Sales are recognized as earned revenue when a)Cash is received from credit sales b)An order is received  c)Adjusting entries are made d)Goods have been transferred from the seller to the buyer correct answer with explain

What would the journal entry be for the payment of an amount owing to a supplier?    A. Dr Purchases; Cr Bank  B. Dr Creditors control; Cr Purchases  C. Dr Creditors control; Cr Bank  D. Dr Purchases; Cr Creditors control

Fiona Sportyuses a purchases journal, a cash payments journal, a sales journal, a cash receipts journal and a general journal. Indicate in which journals the following transactions are most likely to be recorded. a)Purchased inventories on credit b)Sales of inventory on credit c)Received a payment of a customer’s account d)Payment of monthly rent by cheque e)End of period closing entries