Column II. 2. A ledger that contains all accounts needed to prepare financial statements. (p. 94)

Transcription

1 Study Guide 4 Name Identifying Accounting Terms Identifying Accounting Concepts and Practices Analyzing Posting from a Journal to a General Ledger Total Perfect Score 7 Pts. 20 Pts. 13 Pts. 40 Pts. Your Score Part One Identifying Accounting Terms Directions: Select the one term in Column I that best fits each definition in Column II. Print the letter identifying your choice in the Answers column. Column I A. account Column II 1. A group of accounts. (p. 94) Answers 1. E B. correcting entry 2. A ledger that contains all accounts needed to prepare financial statements. (p. 94) 2. D C. file maintenance 3. The number assigned to an account. (p. 94) 3. A D. general ledger 4. The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. (p. 95) 4. C E. ledger 5. Writing an account title and number on the heading of an account. (p. 96) 5. F F. opening an account 6. Transferring information from a journal entry to a ledger account. (p. 98) 6. G G. posting 7. An additional journal entry made to correct an incorrect journal entry. (p. 112) 7. B Chapter 4 Posting to a General Ledger 55

2 Part Two Identifying Account Concepts and Practices Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 1. Because an account form has columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account form. (p. 93) 2. The asset division accounts for Delgado Web Services are numbered in the 200s. (p. 94) Answers 1. T 2. F 3. The cash account for Delgado Web Services is the first asset account and is numbered 110. (p. 94) 3. T 4. The third division of Delgado Web Services chart of accounts is the owner s equity division. (p. 94) 5. The first digit of account numbers for accounts in the owner s equity ledger division is 4. (p. 94) 6. The last two digits in a 3-digit account number indicate the general ledger division of the account. (p. 94) 7. When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515. (p. 95) 8. Delgado Web Services arranges expense accounts in chronological order in its general ledger. (p. 95) 9. The two steps for opening an account are writing the account title and recording the balance. (p. 96) 10. Separate amounts in special amount columns are not posted individually. (p. 98) T F F T F F T 11. Separate amounts in general amount columns are not posted individually. (p. 98) 11. F 12. The only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted. (p. 99) 13. A check mark in parentheses below a General Debit column total indicates that the total is not posted. (p. 103) 14. The totals of general amount columns in a journal are not posted. (p. 103) F T T 15. With the exception of the totals lines, the Post. Ref. column is completely filled in with either an account number or a check mark. (p. 103) 16. Errors discovered before entries are posted must be corrected with a correcting entry. (p. 112) 17. If an error requires a correcting entry, a memorandum is prepared as the source document describing the correction to be made. (p. 112) 18. If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash. (p. 112) 19. If an error in posting is made but not discovered until additional postings have been made to the account, the correct posting should be made on the next available line in the correct account. (p. 113) 20. All corrections for posting errors should be made in a way that leaves no question as to the correct amount. (p. 113) T F T F T T 56 Working Papers TE

3 Name Date Class Part Three Analyzing Posting from a Journal to a General Ledger Directions: In the journal below, some items are identified with capital letters. In the general ledger accounts, locations to which items are posted are identified with numbers. For each number in a general ledger account, select the letter in the journal that will be posted to the account. Print the letter identifying your choice in the Answers column. 1 TITLE DOC. NO. JOURNAL PAGE 1A GENERAL SALES CASH Mar. 1 R. Rosen, Capital R Supplies C B T2 C Totals D E F G H I J K 26 Cash NO Supplies NO Sales NO A through F (pp ) G through K (pp ) Bold Numbers in Ledger Accounts Answers D E A J K D E A B D E A I Chapter 4 Posting to a General Ledger 57

4 5 A 6 2 P C C O S F T 1 G E U N T N E R 3 4 L U M B E R O D R G R I L E M A I N T E N A N C E N L R C G L T E I D N G G E E R N T R Y C Across 5. The number assigned to an account. 6. The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. Down 1. A ledger that contains all accounts needed to prepare financial statements. 2. Transferring information from a journal entry to a ledger account. 3. A group of accounts. 4. If a transaction has been improperly journalized and posted to the ledger, the incorrect journal entry should be corrected with this type of additional journal entry. 58 Working Papers TE

5 Name Date Class 4-1 WORK TOGETHER, p. 97 Preparing a chart of accounts and opening an account 1. Seville Company Chart of Accounts Balance Sheet Accounts Income Statement Accounts (100) Assets (400) Revenue 110 Cash 410 Sales 120 Accounts Receivable L. North (500) Expenses 130 Accounts Receivable Greg Varez 510 Automobile Expense 140 Supplies 520 Insurance Expense 150 Prepaid Insurance 530 Miscellaneous Expense (200) Liabilities 540 Rent Expense 210 Accounts Payable Anoka Supplies 550 Supplies Expense 220 Accounts Payable Supply Mart (300) Owner s Equity 310 Isabelle Seville, Capital 320 Isabelle Seville, Drawing 2. New Accounts Account Number Account Title 535 Postage Expense 560 Utilities Expense 3. Cash NO. 110 Chapter 4 Posting to a General Ledger 59

6 4-1 ON YOUR OWN, p. 97 Preparing a chart of accounts and opening an account 1. Ross Hair Care Chart of Accounts Balance Sheet Accounts Income Statement Accounts (100) Assets (400) Revenue 110 Cash 410 Sales 120 Accounts Receivable T. Ryan (500) Expenses 130 Accounts Receivable G. Sieler 510 Delivery Expense 140 Supplies 520 Insurance Expense 150 Prepaid Insurance 530 Supplies Expense (200) Liabilities 540 Telephone Expense 210 Accounts Payable Ely Company 220 Accounts Payable Pine Supplies (300) Owner s Equity 310 Parker Ross, Capital 320 Parker Ross, Drawing 2. New Accounts Account Number Account Title 525 Rent Expense 550 Water Expense 3. Delivery Expense NO Working Papers TE

7 Name Date Class 4-2 and 4-3 WORK TOGETHER, pp. 102 and Posting separate amounts to a general ledger 4-3 Posting column totals to a general ledger 1 TITLE DOC. NO. JOURNAL PAGE GENERAL SALES CASH Apr. 1 Omar Boje, Capital R Prepaid Insurance C Supplies M Accts. Pay. Ready Supply T Accts. Rec. Dan Carroll S Rent Expense C Accts. Pay. Ready Supply C Accts. Rec. Dan Carroll R Omar Boje, Drawing C Totals ( ) ( ) (410) (110) (110) Chapter 4 Posting to a General Ledger 61

8 4-2 and 4-3 WORK TOGETHER (continued) GENERAL LEDGER Cash NO. 110 Apr Accounts Receivable Dan Carroll NO Apr Supplies NO. 130 Apr Prepaid Insurance NO Apr Accounts Payable Ready Supply NO Apr Working Papers TE

9 Name Date Class 4-2 and 4-3 WORK TOGETHER (concluded) GENERAL LEDGER Omar Boje, Capital NO. 310 Apr Omar Boje, Drawing NO. 320 Apr Sales NO. 410 Apr Rent Expense NO. 510 Apr NO. Chapter 4 Posting to a General Ledger 63

10 4-2 and 4-3 ON YOUR OWN, pp. 102 and Posting separate amounts to a general ledger 4-3 Posting column totals to a general ledger 1 TITLE DOC. NO. JOURNAL PAGE GENERAL SALES CASH Oct. 1 Helen Orr, Capital R Supplies M Accts. Pay. Stein Company Prepaid Insurance C Accts. Rec. K. Green S T Advertising Expense C Accts. Pay. Stein Company C Accts. Rec. K. Green R Helen Orr, Drawing C Totals ( ) ( ) (410) (110) (110) Working Papers TE

11 Name Date Class 4-2 and 4-3 ON YOUR OWN (continued) GENERAL LEDGER Cash NO. 110 Oct Accounts Receivable K. Green NO. 120 Oct Supplies NO. 130 Oct Prepaid Insurance NO. 140 Oct Accounts Payable Stein Company NO. 210 Oct Chapter 4 Posting to a General Ledger 65

12 4-2 and 4-3 ON YOUR OWN (concluded) GENERAL LEDGER Helen Orr, Capital NO. 310 Oct Helen Orr, Drawing NO. 320 Oct Sales NO. 410 Oct Advertising Expense NO. 510 Oct NO. 66 Working Papers TE

13 Name Date Class 4-4 WORK TOGETHER, p. 114 Journalizing correcting entries and correcting posting errors 1. TITLE DOC. NO Dec. 1 Supplies M JOURNAL PAGE GENERAL SALES CASH 1 1 Prepaid Insurance Rent Expense M Repair Expense Art Stevenson, Drawing NO Nov Chapter 4 Posting to a General Ledger 67

14 4-4 ON YOUR OWN, p. 114 Journalizing correcting entries and correcting posting errors 1. TITLE DOC. NO July 1 Supplies M JOURNAL PAGE GENERAL SALES CASH 1 1 Prepaid Insurance Advertising Expense M Miscellaneous Expense Janet Bies, Capital NO June Working Papers TE

15 Name Date Class 4-1 APPLICATION PROBLEM (LO1, 2, 3, 4), p. 117 Preparing a chart of accounts and opening an account 1. Deters Duplicating Chart of Accounts Balance Sheet Accounts Income Statement Accounts (100) Assets (400) Revenue 110 Cash 410 Sales 120 Accounts Receivable J. Chin (500) Expenses 130 Accounts Receivable A. Karn 510 Advertising Expense 140 Supplies 520 Charitable Expense 150 Prepaid Insurance 530 Insurance Expense (200) Liabilities 540 Postage Expense 210 Accounts Payable River Company 550 Rent Expense 220 Accounts Payable Sharma Supply (300) Owner s Equity 310 Kajal Chauhan, Capital 320 Kajal Chauhan, Drawing 2. New Accounts Account Number Account Title 525 Delivery Expense 560 Telephone Expense 3. Prepaid Insurance NO. 150 Postage Expense NO. 540 Chapter 4 Posting to a General Ledger 69

16 4-2 and 4-3 APPLICATION PROBLEMS (LO5, 6), p Posting separate amounts to a general ledger 4-3 Posting column totals to a general ledger 1 TITLE DOC. NO. JOURNAL PAGE GENERAL SALES CASH July 1 Jing Suen, Capital R Prepaid Insurance C Supplies M Accts. Pay. Bayou Supply T Accts. Rec. M. Kadam S Advertising Expense C Accts. Pay. Bayou Supply C Accts. Rec. M. Kadam R Jing Suen, Drawing C Totals ( ) ( ) (410) (110) (110) Working Papers TE

17 Name Date Class 4-2 and 4-3 APPLICATION PROBLEMS (continued) GENERAL LEDGER Cash NO. 110 July Accounts Receivable M. Kadam NO. 120 July Supplies NO. 130 July Prepaid Insurance NO. 140 July Accounts Payable Bayou Supply NO. 210 July Chapter 4 Posting to a General Ledger 71

18 4-2 and 4-3 APPLICATION PROBLEMS (concluded) GENERAL LEDGER Jing Suen, Capital NO. 310 July Jing Suen, Drawing NO. 320 July Sales NO. 410 July Advertising Expense NO. 510 July NO. 72 Working Papers TE

19 Name Date Class 4-4 APPLICATION PROBLEM (LO7, 8), p. 117 Journalizing correcting entries and correcting posting errors 1. TITLE DOC. NO Aug. 1 Utilities Expense M JOURNAL PAGE GENERAL SALES CASH 1 1 Repairs Expense Sales M Vivian Lynum, Capital Supplies NO July Chapter 4 Posting to a General Ledger 73

20 4-M MASTERY PROBLEM (LO3, 4, 5, 6), p. 118 Journalizing transactions and posting to a general ledger TITLE JOURNAL PAGE DOC. NO. GENERAL SALES CASH Feb. 1 Brian Ford, Capital R Supplies C T Accts. Rec. Clara Walthers S Rent Expense C Miscellaneous Expense C Supplies M Accts. Pay. Corner Supplies T Advertising Expense C Accts. Pay. Corner Supplies C Utilities Expense C Accts. Rec. Clara Walthers R Supplies C Supplies C T Brian Ford, Drawing C T Totals (410) (110) (110) ( ) ( ) 1 Prove the journal: Debit Credit Column Column Totals Column Totals General... Sales.... Cash.... Totals... $ 5, $11, , , , $24, $24, Prove cash: Cash on hand at the beginning of the month... + Total cash received during the month.... Total cash... Total cash paid during the month... Cash balance at the end of the month... Checkbook balance on the next unused check stub.... $ , $ 18, (4,586.00) $13, $ 13, Working Papers TE

21 Name Date Class 4-M MASTERY PROBLEM (continued) GENERAL LEDGER Cash NO. 110 Feb Accounts Receivable Clara Walthers NO. 120 Feb Supplies NO. 130 Feb Accounts Payable Corner Supplies NO. 210 Feb Chapter 4 Posting to a General Ledger 75

22 4-M MASTERY PROBLEM (continued) GENERAL LEDGER Brian Ford, Capital NO. 310 Feb Brian Ford, Drawing NO. 320 Feb Sales NO. 410 Feb Advertising Expense NO. 510 Feb Working Papers TE

23 Name Date Class 4-M MASTERY PROBLEM (concluded) GENERAL LEDGER Miscellaneous Expense NO. 520 Feb Rent Expense NO. 530 Feb Utilities Expense NO. 540 Feb NO. Chapter 4 Posting to a General Ledger 77

24 4-S SOURCE DOCUMENTS PROBLEM (LO5, 6), p. 118 Journalizing transactions and posting to a general ledger Receipt No. 1 Date, From For $ Sept. 2 Darlene Steffens Investment 3, Receipt No. 1 Date Rec d from For September 2 Darlene Steffens Investment Thirty-five hundred and no/100 Amount $ Darlene Steffens Received by 3, Dollars No. 1 Date $ To For Sept Ready Rental Agency September rent 2 BROUGHT FORWARD 0 00 AMOUNT DEPOSITED , Date SUBTOTAL 3, AMOUNT THIS CHECK CARRIED FORWARD 3, No. 1 MEMORANDUM Bought supplies on account from Atlas Supplies, $ Darlene Steffens September 6, Signed: Date: 78 Working Papers TE

25 Name Date Class 4-S SOURCE DOCUMENTS PROBLEM (continued) No. 2 Date $ To For Sept Connect Telephone Company Telephone bill BROUGHT FORWARD 3, AMOUNT DEPOSITED SUBTOTAL Date 3, AMOUNT THIS CHECK CARRIED FORWARD 2, Sept. 7, T * * Darlene s Music Studio 2356 Pacific Blvd. S. Albany, OR Sold to: No. 1 K. Hrbek 3088 Pine Street Albany, OR Date 9/10/-- 30 days Terms 6 DESCRIPTION Amount Guitar lessons $ Total $ No. 3 Date $ To For Sept Arneson Insurance Agency Insurance BROUGHT FORWARD 2, AMOUNT DEPOSITED Date SUBTOTAL 3, AMOUNT THIS CHECK CARRIED FORWARD 2, Sept. 14, T * * Chapter 4 Posting to a General Ledger 79

26 4-S SOURCE DOCUMENTS PROBLEM (continued) No. 4 Date $ To For Sept Sun Newspaper Advertising BROUGHT FORWARD 2, AMOUNT DEPOSITED Date SUBTOTAL 3, AMOUNT THIS CHECK CARRIED FORWARD 3, Sept. 21, T * * No. 5 Date $ To For Sept Atlas Supplies On account 11 BROUGHT FORWARD 3, AMOUNT DEPOSITED Date SUBTOTAL 3, AMOUNT THIS CHECK CARRIED FORWARD 3, Receipt No. 2 Date, From For Sept. 24 K. Hrbek On account $ Receipt No. 2 Date Rec d from For September 24 K. Hrbek On account Two hundred thirteen and no/100 Amount $ CHF Received by Dollars 80 Working Papers TE

27 Name Date Class 4-S SOURCE DOCUMENTS PROBLEM (continued) No. 6 Date $ To For Sept Atlas Supplies Supplies 13 BROUGHT FORWARD 3, AMOUNT DEPOSITED Date SUBTOTAL 3, AMOUNT THIS CHECK CARRIED FORWARD 3, Sept. 28, T * * No. 7 Date $ To For Sept City Electric Electric bill 15 BROUGHT FORWARD 3, AMOUNT DEPOSITED Date SUBTOTAL 3, AMOUNT THIS CHECK CARRIED FORWARD 3, Darlene s Music Studio 2356 Pacific Blvd. S. Albany, OR Sold to: No. 2 K. Hrbek 3088 Pine Street Albany, OR Date 9/29/-- 30 days Terms 16 DESCRIPTION Amount Guitar lessons $ Total $ Chapter 4 Posting to a General Ledger 81

28 4-S SOURCE DOCUMENTS PROBLEM (continued) Sept. 30, T * * No. 7 Date $ To For Sept Darlene Steffens Withdrawal of equity 18 BROUGHT FORWARD 3, AMOUNT DEPOSITED Date SUBTOTAL 3, AMOUNT THIS CHECK CARRIED FORWARD 3, No. 8 Date $ To 19 For BROUGHT FORWARD 3, AMOUNT DEPOSITED SUBTOTAL Date AMOUNT THIS CHECK CARRIED FORWARD 82 Working Papers TE

29 Name Date Class 4-S SOURCE DOCUMENTS PROBLEM (continued) JOURNAL PAGE TITLE DOC. NO. GENERAL SALES CASH Sept. 2 Darlene Steffens, Capital (1) R Rent Expense (2) C Supplies (3) M Accts. Pay. Atlas Supplies Utilities Expense (4) C (5) T Accts. Rec. K. Hrbek (6) S Prepaid Insurance (7) C (8) T Advertising Expense (9) C (10) T Accts. Pay. Atlas Supplies (11) C Accts. Rec. K. Hrbek (12) R Supplies (13) C (14) T Utilities Expense (15) C Accts. Rec. K. Hrbek (16) S (17) T Darlene Steffens, Drawing (18) C Totals (410) (110) (110) ( ) ( ) Prove the journal: Debit Credit Column Column Totals Column Totals General... Sales.... Cash.... Totals... $3, $4, , , , $9, $9, Prove cash: Cash on hand at the beginning of the month... + Total cash received during the month.... Total cash... Total cash paid during the month... Cash balance at the end of the month... Checkbook balance on the next unused check stub.... $ , $5, (2,568.00) $3, $3, Chapter 4 Posting to a General Ledger 83

30 4-S SOURCE DOCUMENTS PROBLEM (continued) GENERAL LEDGER Cash NO. 110 Sept Accounts Receivable K. Hrbek NO. 120 Sept Supplies NO. 130 Sept Prepaid Insurance NO. 140 Sept Working Papers TE

31 Name Date Class 4-S SOURCE DOCUMENTS PROBLEM (continued) GENERAL LEDGER Accounts Payable Atlas Supplies NO. 210 Sept Darlene Steffens, Capital NO. 310 Sept Darlene Steffens, Drawing NO. 320 Sept Sales NO. 410 Sept Chapter 4 Posting to a General Ledger 85

32 4-S SOURCE DOCUMENTS PROBLEM (concluded) GENERAL LEDGER Advertising Expense NO. 510 Sept Rent Expense NO. 520 Sept Utilities Expense NO. 530 Sept NO. 86 Working Papers TE

33 Name Date Class 4-C CHALLENGE PROBLEM (LO5, 6), p. 119 Posting using a variation of the five-column journal JOURNAL PAGE Debit TITLE DOC. Cash General NO. GENERAL SALES CASH May 1 Lian Liu, Capital R Rent Expense C Miscellaneous Expense C Accts. Rec. Janna Spear S Supplies C T Supplies M Accts. Pay. Dollar Smart Accts. Pay. Dollar Smart C Utilities Expense C T Advertising Expense C Supplies C Supplies C T Lian Liu, Drawing C T Totals (110) ( ) (410) (110) ( ) Chapter 4 Posting to a General Ledger 87

34 4-C CHALLENGE PROBLEM (continued) GENERAL LEDGER Cash NO. 110 May Accounts Receivable Janna Spear NO. 120 May Supplies NO. 130 May Accounts Payable Dollar Smart NO. 210 May Lian Liu, Capital NO. 310 May Working Papers TE

35 Name Date Class 4-C CHALLENGE PROBLEM (concluded) GENERAL LEDGER Lian Liu, Drawing NO. 320 May Sales NO. 410 May Advertising Expense NO. 510 May Miscellaneous Expense NO. 520 May Rent Expense NO. 530 May Utilities Expense NO. 540 May Chapter 4 Posting to a General Ledger 89