Question

1.Which of the following is not an error that would cause the trial balance to become unequal? a. Balance entered in wrong column of account b. Column incorrectly added c. The debit part of an entry posted to the wrong account as a debit d. Debit is posted as a credit, or vice versa

2.

If a fee of $2,850 earned from a client was debited to Accounts Receivable for $2,580 and credited to Fees Earned for $2,850, which of the following statements would be true?

a.The credit total of the trial balance would be higher by $270.

b.The trial balance totals would be equal.

c.The debit total of the trial balance would be higher by $270.

d.The wrong account is credited.

3.

The owner, Alex Xu, invested an additional $45,000 of cash into his business. Which of the following journal entries should the company record?

a.

Cash45,000

Alex Xu, Capital45,000

b.

Alex Xu, Capital45,000

Cash45,000

c.

Cash45,000

Alex Xu, Deposits45,000

d.

Alex Xu, Capital45,000

Sales Revenue45,000

4.

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The journal entry to record fees of $13,500 earned on account would include

a.a debit to Accounts Receivable for $13,500 and a credit to Fees Earned for $13,500.

b.a debit to Cash for $13,500 and a credit to Fees Earned for $13,500.

c.a debit to Cash for $13,500 and a credit to Accounts Receivable for $13,500.

d.a debit to Fees Earned for $13,500 and a credit to Accounts Receivable for $13,500.

5.

Using the following information, determine the balance of the cash account. The left side of the T account sums to $34,500, and the right side of the T account sums to $19,450.

a.$19,450

b.$15,050

c.$34,500

d.$53,950

6.

The journal entry to pay creditors on account would include

a.a debit to Accounts Payable.

b.a credit to Accounts Payable.

c.a credit to Accounts Receivable.

d.a debit to Accounts Receivable.

7.

The normal balance of an asset account is

a.zero.

b.a credit.

c.negative.

d.a debit.

8.

A group of accounts for a business entity is called a

a.T account.

b.chart of accounts.

c.ledger.

d.transaction.

9.

The debits and credits for each journal entry are posted to the accounts

a.in no special order.

b.in the order in which they occur in the chart of accounts.

c.in alphabetical order.

d.in the order in which they occur in the journal.

10.

The process of posting is transferring the debits and credits from the

a.T accounts to the ledger.

b.journal to the ledger.

c.ledger to the journal.

d.T accounts to the journal.

11.

A fee earned on account was journalized and posted in error as a debit to Fees Earned and a credit to Accounts Receivable. The correcting journal entry would include

a.a debit to Cash.

b.a debit to Accounts Payable.

c.a credit to Accounts Payable.

d.a debit to Accounts Receivable.

Answer 1

Solution 1:

"The debit part of an entry posted to the wrong account as a debit" is not an error that would cause the trial balance to become unequal

Hence option C is correct.

Solution 2:

If a fee of $2,850 earned from a client was debited to Accounts Receivable for $2,580 and credited to Fees Earned for $2,850, "The credit total of the trial balance would be higher by $270."

Hence option a is correct.

Solution 3:

Following journal entry will be made:

Cash Dr 45,000

To Alex Xu, Capital 45,000

Hence option a is correct.

Solution 4:

The journal entry to record fees of $13,500 earned on account would include, "A debit to Accounts Receivable for $13,500 and a credit to Fees Earned for $13,500."

Hence option a is correct.

Solution 5:

Cash balance = $34,500 - $19,450 = $15,050

Hence option b is correct.

Solution 6:

The journal entry to pay creditors on account would include, "a debit to Accounts Payable."

Hence option a is correct.

Solution 7:

The normal balance of an asset account is "Debit"

Hence option d is correct.

Solution 8:

A group of accounts for a business entity is called a "chart of accounts."

Hence option b is correct.

Solution 9:

The debits and credits for each journal entry are posted to the accounts "in the order in which they occur in the journal"

Hence option d is correct.

Solution 10:

The process of posting is transferring the debits and credits from the "journal to the ledger."

Hence option b is correct.

Solution 11:

The correcting journal entry would include "a debit to Accounts Receivable"

Hence option d is correct.