Accounting Connect Chapter 4 Flashcards
20 Questions
100 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

When transactions are entered in a general journal, in what order are they recorded?

Chronological order

What can you do if an error in a journal entry is discovered before posting?

Cross out and correct the journal entry

The amount debited to cash in a journal entry should be posted as a credit to what?

Owner's Equity

What is the General Ledger?

<p>A master reference file for the accounting system</p> Signup and view all the answers

What would be the journal entry to record the performance of services for cash?

<p>A debit to cash and a credit to income fees</p> Signup and view all the answers

What does the General Ledger contain?

<p>The accounts that are used to prepare the financial statements</p> Signup and view all the answers

What is the journal entry to record a bill for utilities paid in the next month?

<p>Debit utilities expense and credit A/P</p> Signup and view all the answers

What entry should be made first in the general journal?

<p>Accounts to be debited</p> Signup and view all the answers

What do posting references provide?

<p>A useful cross-reference when entries must be traced and verified</p> Signup and view all the answers

How do you record the purchase of supplies for $750 on credit?

<p>Debit Supplies for $750 and Credit A/P $750</p> Signup and view all the answers

How would you record an additional investment in cash of $10,000?

<p>Debit Cash for $10,000 and Credit Capital for $10,000</p> Signup and view all the answers

If an owner wanted to see the debit and credit entry for a specific transaction, where would they look?

<p>The Journal</p> Signup and view all the answers

In what order are General Ledger accounts usually arranged?

<p>First the balance sheet accounts, then the income statement accounts</p> Signup and view all the answers

What do compound entries affect?

<p>More than one debit and more than one credit</p> Signup and view all the answers

How would you journalize receiving $865 in cash on account from customers?

<p>Debit Cash for $865 and Credit A/R for $865</p> Signup and view all the answers

What should the journal entry to record the sale of services on credit include?

<p>A debit to cash and a credit to accounts receivable</p> Signup and view all the answers

How do you journalize services performed for $1,350 on credit?

<p>Debit A/R and credit Delivery fee income</p> Signup and view all the answers

How would you journalize returned damaged supplies with a cash refund of $60?

<p>Debit cash and credit supplies</p> Signup and view all the answers

How do you correct an entry for a check incorrectly recorded as a debit to Rent expense?

<p>Debit drawing account and credit rent expense</p> Signup and view all the answers

What correcting entry is necessary if the Office Equipment account was incorrectly debited instead of the Shop Equipment account?

<p>Debit Shop Equipment $4,500 and credit Office Equipment $4,500</p> Signup and view all the answers

Study Notes

General Journal and Ledger Entries

  • Transactions are recorded in the general journal in chronological order, similar to a diary.
  • If an error is found before posting to the ledger, cross out and correct the journal entry.
  • Amounts debited to cash should be credited to Owner's Equity.

General Ledger Insights

  • The General Ledger serves as the master reference for the accounting system, documenting all transaction activity in individual accounts.
  • It contains all accounts necessary for preparing financial statements, arranged with balance sheet accounts first, followed by income statement accounts.

Journal Entries

  • To record cash received for services performed: Debit Cash and Credit Income Fees.
  • For a utility bill paid next month: Debit Utilities Expense and Credit Accounts Payable.
  • First entry made in the general journal is accounts to be debited.
  • To purchase supplies on credit for $750: Debit Supplies $750 and Credit Accounts Payable $750.

Investment and Cash Transactions

  • If additional cash investment is made: Debit Cash $10,000 and Credit Capital $10,000.
  • Cash received on account of $865: Debit Cash $865 and Credit Accounts Receivable $865.
  • Sale of services on credit includes a debit to Accounts Receivable and credit to Revenue.

Adjustments and Corrections

  • For performing services of $1,350 on credit: Debit Accounts Receivable and Credit Delivery Fee Income.
  • Returned supplies with a cash refund of $60: Debit Cash and Credit Supplies.
  • If a check for rent was wrongly recorded, the correct entry would be Debit Drawing Account and Credit Rent Expense.
  • For correcting a transaction where office equipment was misclassified: Debit Office Equipment and Credit Utilities Expense.

Equipment Purchases

  • Correcting entry for purchasing shop equipment mistakenly debited from Office Equipment: Debit Shop Equipment $4,500 and Credit Office Equipment $4,500.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

Test your knowledge on the key concepts from Accounting Connect Chapter 4 with these flashcards. Explore the importance of chronological order in journal entries and learn how to correct errors before posting to the ledger. Ideal for accounting students looking to reinforce their understanding of journal entries.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser