Question

SHORT ANSWER REVIEW QUESTIONS

1. Explain how to add a journal transaction in the Account Register that involves both a Balance Sheet and Income Statement account.

2. Why is it often easier to complete General Journal entries by using the Make General Journal Entries form than it is to use the Register?

3. Explain how to add a new General Ledger account while entering transaction information.

4. How can an error in a General Journal entry be corrected after the entry is recorded?

5. How are memorized reports used in QuickBooks?

Answer 1

1. Adding a journal transaction in Account Register involving Balance Sheet and Income Statement Account.

This can be illustrated with an example.
Let us take an example of a cash sale.

The Journal entry would be :

Cash Account Dr.

To sales Account,

where Cash Account is a Balance sheet item and sales account is reflected in the Income Statement.

Accounting the above entry in the Register will ensure that effect is given to both Balance Sheet and Income Statement.

4. Error is journal entries can be corrected by reversing the original entry.

Taking an example of credit sale,

the entry would be:

Receivables Account Dr.

To sales Account.

If erroneous, the reversal would be:

Sales Account Dr.

To Receivables Account.

5. Memorized Report is a tool in Quickbooks which is used for items of repetitive nature. For example, changes are made to a report and saved. If such a report with the modifications are required again, instead of making the changes again, the report is saved (when changes made the first time) in the Memorized List which can be used again when similar report is required.