Question 1

Ford Enterprises paid a creditor on account. Assuming the use of special journals, this entry would be recorded in the:

Accepted Answer

The cash payments journal is used for recording all transactions where cash is paid out, including payments to creditors.

Question 2

Big Industries purchased merchandise from Small Company paying $5,000 in cash and promising to pay the remaining $5,000 in 30 days. Assuming the use of special journals, Big Industries would record this entry in the:

Accepted Answer

The cash payments journal is used to record all transactions where cash is paid out, including the initial $5,000 cash payment by Big Industries to Small Company.

Question 3

The account that is credited for every transaction entered in the purchases journal is:

Accepted Answer

In the purchases journal, the account that is typically credited is Accounts Payable, as it represents the liability incurred from purchasing goods on credit.

Question 4

The purchase of equipment on account would be recorded in the:

Accepted Answer

The answer of The purchase of equipment on account would...

Question 5

Amounts are posted individually from the purchases journal to the:

Accepted Answer

The purchases journal records transactions involving the purchase of inventory on credit. These amounts are posted individually to the credit column of the creditors' (suppliers') accounts in the accounts payable subsidiary ledger to track how much is owed to each creditor.

Question 6

The purchase of office equipment for cash would be recorded in:

Accepted Answer

The purchase of office equipment for cash is recorded in the cash payments journal because this journal is used to record all transactions where cash is paid out, including the purchase of assets like office equipment.

Question 7

Laoshan Company uses a cash payments journal for all its payments by cheque. At the end of December, the journal shows the following information: $\begin{array} { | r | r | l | r | r | r | } 
\hline \text { Date } & \text { Cheque \# } & \text { Account Debited } & \begin{array} { c } 
\text { Other } \
\text { Accounts } \
\text { Debit }
\end{array} & \begin{array} { c } 
\text { Accounts } \
\text { Payable } \
\text { Debit }
\end{array} &  { \begin{array} { c } 
\text { Cash } \
\text { Credit }
\end{array} } \
\hline \text { Dec 3 } & 4022 & \text { Supplies } & \$ 460 & & \$ 460 \
\hline 9 & 4023 & \text { Adams Co. } & & \$ 1,200 & 1,200 \
\hline 15 & 4024 & \text { Repair expense } & 145 & & 145 \
\hline 19 & 4025 & \text { Inventory } & 2,400 & & 2,400 \
\hline 21 & 4026 & \text { Misc. expense } & 75 & & 75 \
\hline 23 & 4027 & \text { McDermott Co. } & & 3,600 & 3,600 \
\hline & & \text { Total } & \$ 3,080 & \$ 4,800 & \$ 7,880 \
\hline
\end{array}$ When this journal is posted, what entry will be made to the accounts payable control account?

Accepted Answer

The accounts payable control account will be debited by $4,800, reflecting the total amount paid to suppliers, reducing the company's liability.

Question 8

The entries in a purchases journal are posted to the ________ subsidiary ledger.

Accepted Answer

The purchases journal is used to record credit purchases, which are typically owed to suppliers or vendors. These entries are posted to the accounts payable subsidiary ledger, which tracks amounts owed to each vendor.

Question 9

Which of the following is recorded in the cash payments journal?

Accepted Answer

The cash payments journal is used to record all transactions that involve the payment of cash. Option B, "cash payment on an accounts payable," directly involves paying out cash to settle an obligation or debt, which is precisely the type of transaction recorded in a cash payments journal.

Question 10

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

Accepted Answer

The answer of The accounts payable subsidiary ledger controls the...

Question 11

The individual amounts in the accounts payable credit column of the purchases journal are posted:

Accepted Answer

The individual amounts in the accounts payable credit column of the purchases journal are posted individually to the accounts payable subsidiary ledger. This allows for tracking of amounts owed to each specific creditor.

Question 12

Balancing the ledgers refers to establishing equality in all of the following except:

Accepted Answer

Balancing the ledgers involves ensuring that total debits equal total credits in the general ledger, and that the balances of control accounts (like Accounts Receivable (A/R) and Accounts Payable (A/P)) match the total balances in their respective subsidiary ledgers. However, balancing does not involve matching the balance of a sales account in the general ledger with the A/R subsidiary ledger, as the sales account records revenue transactions, while the A/R subsidiary ledger tracks amounts owed by customers.

Question 13

Entries in the purchases journal are posted to the:

Accepted Answer

Entries in the purchases journal are typically posted to both the general ledger and the accounts payable subsidiary ledger. The general ledger reflects the overall financial transactions, while the accounts payable subsidiary ledger provides detailed information about amounts owed to each creditor.

Question 14

The accounts payable subsidiary ledger has postings from which sets of journals?

Accepted Answer

The accounts payable subsidiary ledger is primarily affected by transactions involving purchases (where liabilities to suppliers are incurred), cash payments (where these liabilities are settled), and general journal entries (for adjustments, corrections, or any other transaction affecting accounts payable).

Question 15

Amounts are posted individually from the purchases journal to the:

Accepted Answer

Amounts from the purchases journal are posted individually to the accounts payable subsidiary ledger to keep track of amounts owed to each individual creditor. This allows for detailed tracking of what is owed to each supplier.

Question 16

In a manual accounting system the posting from a purchases journal includes daily posting for cash transactions.

Accepted Answer

In a manual accounting system, the purchases journal is used for recording credit purchases, not cash transactions. Cash transactions are typically recorded in the cash payments journal.

Question 17

The ________ journal is used by the seller to record the return by a customer of merchandise sold for cash.

Accepted Answer

The cash payments journal is used to record transactions involving cash outflows, such as refunds to customers for returned merchandise.

Quiz 7: Accounting Information Systems

Ford Enterprises paid a creditor on account. Assuming the use of special journals, this entry would be recorded in the:

Big Industries purchased merchandise from Small Company paying $5,000 in cash and promising to pay the remaining $5,000 in 30 days. Assuming the use of special journals, Big Industries would record this entry in the:

The account that is credited for every transaction entered in the purchases journal is:

The purchase of equipment on account would be recorded in the:

Amounts are posted individually from the purchases journal to the:

The purchase of office equipment for cash would be recorded in:

The entries in a purchases journal are posted to the ________ subsidiary ledger.

Which of the following is recorded in the cash payments journal?

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

The individual amounts in the accounts payable credit column of the purchases journal are posted:

Balancing the ledgers refers to establishing equality in all of the following except:

Entries in the purchases journal are posted to the:

The accounts payable subsidiary ledger has postings from which sets of journals?

Amounts are posted individually from the purchases journal to the:

In a manual accounting system the posting from a purchases journal includes daily posting for cash transactions.

The ________ journal is used by the seller to record the return by a customer of merchandise sold for cash.