A corporate customer stopped by to check in for her reservation for four nights at Redwood...
A corporate customer stopped by to check in for her reservation
for four nights at Redwood Falls Inn. Kevin had already charged the
whole amount for the customer's stay to the corporate account, but
the customer wanted to pay a $275 deposit for the room.
Which T-Account or T-Accounts correctly show how to record
a deposit for a sale on account?
Before closing the office for the day, Lisa took a phone call
from a corporate customer who wanted to make a reservation for
three nights at Wildwood Inn. The total cost came to $473.00. The
customer asked Lisa to charge the total amount to the company's
account.
Which T-Account or T-Accounts listed below correctly show
how a sale on account should be recorded?
A woman stopped in at the hotel lobby to see if there was room
for her tonight and the next night. The hotel manager, Barbara,
confirmed that she did have a vacancy. The total cost for the two
nights totaled $225.00. The customer paid the total balance using
cash.
Which T-Account or T-Accounts listed below correctly show
how a cash sale should be recorded?
Which of the following characteristics is NOT associated a general journal?
- a.)
It is used daily to record transactions.
- b.)
The amount credited equals the amount debited.
- c.)
Transactions are ordered from greatest to smallest.
- d.)
Events are listed in chronological order.
Which of the following characteristics is associated with a general journal?
- a.)
This is also known as the posting book.
- b.)
There are different accounts for accounts receivable and accounts payable.
- c.)
Tuesday’s records would follow Monday’s records.
- d.)
Each account contains a rolling balance.
Which of the following characteristics is associated with a general ledger?
- a.)
It is the initial documentation of a financial transaction as it originates.
- b.)
If it is May, then the accounting transactions for February, March, April and May are listed.
- c.)
This is also known as the original book of entry.
- d.)
It is categorized by account.
ohn owns an apartment complex and hires a roofing contractor to
replace a section of a roof on one of the buildings.
Which entry correctly shows John paying the contractor
$1,500 cash for the future expense of replacing a section of the
roof?
Dr. Mark Scholz places an order to purchase $300 worth of
supplies that he will use in his animal hospital over the next six
months. The supplier's terms are COD (Cash on Delivery).
Which accounting transaction below is correct?
Which of the following journal entries illustrates a situation where an owner writes him/herself a check for $2,000 from the business?
On January 15, the owner of a sole proprietorship took out
$2,000 for their personal use.
What would the journal entry for this transaction
be?
On January 9, $500 was paid towards a purchase of Office
Supplies on account for $1,000.
What is the journal entry for this
transaction?
On January 2, a company purchases office supplies on account for
$1,000.
What would the journal entry be?
Homework Answers
| Q1. | Which T-accounts show how to record a deposit for a sale on account? | |||
| Ans. | ||||
| Room Rent account | ||||
| Debit | $ | Credit | $ | |
| To Room Deposit account | 275 | |||
| Room Deposit account | ||||
| Debit | $ | Credit | $ | |
| By Room Rent account | 275 | |||
| Corporate Customer account | ||||
| Debit | $ | Credit | $ | |
| By Cash account | 275 | |||
| Cash account | ||||
| Debit | $ | Credit | $ | |
| To Corporate Customer account | 275 | |||
| Q2. | Which T-Account or T-Accounts listed below correctly show how a sale on account | |||
| should be recorded? | ||||
| Ans. | ||||
| Corporate Customer account | ||||
| Debit | $ | Credit | $ | |
| To Room Rent account | 473 | |||
| Room Rent account | ||||
| Debit | $ | Credit | $ | |
| By Corpoarte customer account | 473 | |||
| Q3. | Which T-Account or T-Accounts listed below correctly show how a cash sale should | |||
| be recorded? | ||||
| Ans. | ||||
| Cash account | ||||
| Debit | $ | Credit | $ | |
| To Room Rent account | 225 | |||
| Room Rent account | ||||
| Debit | $ | Credit | $ | |
| By Cash account | 225 | |||
| Q4. | Which of the following characteristics is NOT associated with a general journal? | ||
| a) | It is used daily to record transactions. | ||
| b) | The amount credited equals the amount debited. | ||
| c) | Transactions are ordered from greatest to smallest. | ||
| d) | Events are listed in chronological order. | ||
| Ans. | A journal book is used to record transactions daily and the transactions which | ||
| take place earlier are recorded first and those that occur later are recorded | |||
| afterwards. Hence transactions are recorded in chronological order in a | |||
| journal. Also in a journal both the sides of the transaction are equally | |||
| recorded hence the total amount debited in a jounal entry will always be | |||
| equal to the total amount credited. | |||
| However there is no requirement that transactions of greater amount | |||
| should be recorded first. Transactions are ordered based on their date | |||
| and not based on their amount. | |||
| Hence the option c) is the answer for this question. | |||
| Q5. | Which of the following characteristics is associated with a general journal? | ||
| a) | This is also known as the posting book. | ||
| b) | There are different accounts for accounts receivable and accounts payable. | ||
| c) | Tuesday’s records would follow Monday’s records. | ||
| d) | Each account contains a rolling balance. | ||
| Ans. | All transactions are recorded for the first time in a general journal. From the | ||
| journal, entries are posted to the general ledger. Hence journal is called | |||
| the book of original entry or book of primary entry. | |||
| Accounts receivable arise on account of credit sales and accounts payable | |||
| arise on account of credit purchases. Hence different accounts have to be maintained | |||
| in a journal for accounts receivables and accounts payables. | |||
| In a journal transactions are recorded chronologically hence Tuesday's records | |||
| (entries) will obviously follow Monday's records (entries). | |||
| In a journal transactions are recorded for the first time, hence in each journal entry | |||
| the amount of each account will be different from the other entries. | |||
| In a ledger the entries pertaining to a particular account are collected and shown | |||
| separately hence a ledger account will show rolling balance. | |||
| Hence options b) and c) are associated with a general ledger. | |||
| Q6. | Which of the following characteristics is associated with a general ledger? | ||
| a) | It is the initial documentation of a financial transaction as it originates. | ||
| b) | If it is May, then the accounting transactions for February, March, April and May | ||
| are listed. | |||
| c) | This is also known as the original book of entry. | ||
| d) | It is categorized by account. | ||
| Ans. | As already explained in the answers to questions 4 and 5 above, journal is | ||
| also known as the original book of entry as a transaction is recorded | |||
| initially in a journal. Hence options a) and c) are not associated with a | |||
| general ledger but with general journal. | |||
| In a general ledger entries pertaining to a particular account are posted | |||
| one below the other in a chronological manner. | |||
| Hence answer to this question are options b) and d). | |||
| Q7. | Which entry correctly shows John paying the contractor $1,500 cash for the future | ||
| expense of replacing a section of the roof? | |||
| Ans. | Debit $ | Credit $ | |
| Roofing contractor account | 1500 | ||
| To Cash account | 1500 | ||
| (Cash $1,500 paid to roofing contractor for replacing a section of | |||
| the roof in future) | |||
| Q8. | On January 15, the owner of a sole proprietorship took out $2,000 for their personal use. | ||
| What would the journal entry for this transaction be? | |||
| Ans. |
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