Preparing general journals

Question 1

A business performs services for a customer on credit, $2500 - Journal entry should be?

Answer 1

Debit accounts receivable $2500

Credit Service revenue $2500

Question 2

the best interpretation of the word credit is…

Answer 2

Right side of an account

Question 3

Increase assets and decrease liabilities - Debit or Credit?

Answer 3

Debit

Question 4

General journal contains only revenue and expense account… true or false?

Answer 4

False

Question 5

General journal oders transactions in ____ order

Answer 5

chronological

Question 6

Why does the general journal help prevent or locate errors?

Answer 6

Because debit and credit amounts for each entry are in the same place

Question 7

The General journal records the _____ effect of the transaction in one place.

Answer 7

Complete

Question 8

Share holders invest $35,000 in cash in starting a company, Journal entry is?

Answer 8

Debit cash $35,000

Credit share capital $35,000

Question 9

How do we record transactions?

Answer 9

Use the general journal to record transactions