Question 1

Constantine Corporation reported Net Income for the year ended December 31, 2019, of $23,760 then discovered that the entry to pay the rent for December in the amount of $1,600 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?

Accepted Answer

Since the entry to pay the rent for December in the amount of $1,600 was not journalized and posted, it should be recorded as an expense (debit) and a decrease in cash (credit). Therefore, the correcting journal entry would be:

Rent Expense     1,600
       Cash                  1,600

This will reduce the Net Income by $1,600.

$23,760 - $1,600 = $22,160

Thus, the correct answer is B) $22,160.

Question 2

When posting, the ________ is recorded in the Posting Reference column of the journal.

Accepted Answer

The answer of When posting, the ________ is recorded in...

Question 3

Which of the following statements is CORRECT?

Accepted Answer

When an error in a journal entry is discovered before it is posted to the general ledger, the best practice is to cross out the error and write the correct information above it. This maintains the integrity of the original document and ensures that there is a clear record of the correction.

Question 4

Kelly Corporation reported Net Income for the year ended December 31, 2019, of $16,900 then discovered that an entry for revenue earned on December 30, 2019, in the amount of $1,400 had not been journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?

Accepted Answer

Since the revenue earned on December 30, 2019, in the amount of $1,400 was not journalized and posted, it was not included in the Net Income of $16,900. Therefore, the Net Income after the correcting entry is journalized and posted would be $16,900 + $1,400 = $18,300. Option D is the correct answer.

Question 5

A permanent, classified record of all accounts used in a firm's operation is called a(n)________.

Accepted Answer

The answer of A permanent, classified record of all accounts...

Question 6

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance. The first row has been completed for reference.
$\begin{array}{|l|l|l|l|}
\hline &{\text { Account }} & \text { Debit } & \text { Credit } \
\hline \text { A. } & \text { Cash } & \text { Increase } & \text { Decrease } \
\hline \text { B. } & \text { Accounts Payable } & & \\hline \text { C. } & \text { Fees Income } \
\hline \text { D. } & \text { Ian Roberts, Capital } \
\hline \text { E. } & \text { Ian Roberts, Drawing } \
\hline \text { F. } & \text { Rent Expense } \
\hline \text { G. } & \text { Store Equipment } \
\hline \text { H. } & \text { Telephone Expense } \
\hline
\end{array}$

Accepted Answer

The answer of For each of the accounts listed below,...

Question 7

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Accepted Answer

The answer of For each of the accounts listed below,...

Question 8

Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Accepted Answer

The correct entry to correct the mistake involves debiting Accounts Receivable to increase it (since the service was performed on credit, not paid in cash) and crediting Cash to decrease it, correcting the erroneous posting.

Question 9

The process of transferring data from a journal to a ledger is known as ________.

Accepted Answer

The answer of The process of transferring data from a...

Question 10

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Accepted Answer

The correct entry should move the amount from the incorrectly debited Office Equipment account to the correctly intended Shop Equipment account, without affecting the Cash account since the initial cash transaction was correct.

Question 11

The ________ is recorded in the Posting Reference column of the ledger account.

Accepted Answer

The answer of The ________ is recorded in the Posting...

Question 12

When a transaction is entered in the general journal, the account to be______ is always recorded first in the Description column.

Accepted Answer

The answer of When a transaction is entered in the...

Question 13

The______  is referred to as the record of final entry.

Accepted Answer

The answer of The______  is referred to as the...

Question 14

A description should accompany each entry made in the ________.

Accepted Answer

The answer of A description should accompany each entry made...

Question 15

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance. The first row has been completed for reference.

Accepted Answer

The answer of For each of the accounts listed below,...

Question 16

Notations that allow transactions to be quickly and easily traced from the journal to the ledger or from the ledger to the journal are called ______ references.

Accepted Answer

The answer of Notations that allow transactions to be quickly...

Question 17

A journal entry containing more than one debit or more than one credit is called a(n)________ entry.

Accepted Answer

The answer of A journal entry containing more than one...

Question 18

A(n)______  entry is recorded when there is an error in data that has been journalized and posted.

Accepted Answer

The answer of A(n)______  entry is recorded when there...

Question 19

The process of recording transactions in a journal is referred to as ________.

Accepted Answer

The answer of The process of recording transactions in a...

Question 20

A ________ is referred to as a record of original entry.

Accepted Answer

The answer of A ________ is referred to as a...

Quiz 4: The General Journal and the General Ledger

Constantine Corporation reported Net Income for the year ended December 31, 2019, of $23,760 then discovered that the entry to pay the rent for December in the amount of $1,600 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?

When posting, the ________ is recorded in the Posting Reference column of the journal.

Which of the following statements is CORRECT?

A permanent, classified record of all accounts used in a firm's operation is called a(n)________.

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

The process of transferring data from a journal to a ledger is known as ________.

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

The ________ is recorded in the Posting Reference column of the ledger account.

When a transaction is entered in the general journal, the account to be______ is always recorded first in the Description column.

The______ is referred to as the record of final entry.

A description should accompany each entry made in the ________.

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance. The first row has been completed for reference.

Notations that allow transactions to be quickly and easily traced from the journal to the ledger or from the ledger to the journal are called ______ references.

A journal entry containing more than one debit or more than one credit is called a(n)________ entry.

A(n)______ entry is recorded when there is an error in data that has been journalized and posted.

The process of recording transactions in a journal is referred to as ________.

A ________ is referred to as a record of original entry.