Chapter 4 Flashcards
When an entry is made in the general journal..
Accounts to be debited should be listed first.
The journal entry to record the sale of services on credit should include a…
Debit to Accounts Receivable and a credit to Fees Income.
The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include a…
Debit to Sue Snow, Drawing and a credit to Cash.
The Accounts Payable account has a $5,000 credit balance. An entry for the payment of $2,000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is…
A $3,000 credit balance.
The Posting Reference column of a journal is used to…
Record the number of the ledger account to which the information is posted.
The process of transferring data from the journal to the ledger is known as…
Posting.
A firm purchased telephone equipment for cash. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. The error was discovered after the data posted. The correcting entry should contain…
A debit to Office Equipment and a credit to Utilities Expense.
