Question : 11) The purchase of equipment account would be recorded in : 1212685

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

A) cash payments journal.

B) general journal.

C) purchases journal.

D) sales journal.

 

12) Entries in the purchases journal are posted to the:

A) general ledger only.

B) general ledger and the accounts payable subsidiary ledger.

C) accounts payable subsidiary ledger and the purchases ledger.

D) accounts payable subsidiary ledger only.

 

13) 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:

A) cash payments journal.

B) general journal.

C) sales journal.

D) cash receipts journal.

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

A) cash.

B) accounts payable.

C) accounts receivable.

D) sales discounts.

 

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

A) accounts receivable

B) customer

C) accounts payable

D) vendor

 

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

A) general

B) sales

C) cash receipts

D) cash payments

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

A) sales, cash payments, and general

B) purchases, cash receipts, and sales

C) purchases, cash payments, and general

D) purchases, general, and cash receipts

 

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

A) total debits and total credits in the general ledger.

B) Balance of A/R control account and A/R subsidiary ledger.

C) Balance of sales account in the general ledger and A/R subsidiary ledger.

D) Balance of A/P control account and A/P subsidiary ledger.

19) Laoshan Company uses a cash payments journal for all its payments by cheque. At the end of December, the journal shows the following information:

 

Date

Cheque #

Account Debited

Other Accounts

Debit

Accounts Payable

Debit

Cash

Credit

Dec  3

4022

Supplies

$460

 

$460

      9

4023

Adams Co.

 

$1,200

1,200

     15

4024

Repair expense

145

 

145

     19

4025

Inventory

2,400

 

2,400

     21

4026

Misc. expense

75

 

75

     23

4027

McDermott Co.

 

3,600

3,600

 

 

     Total

$3,080

$4,800

$7,880

 

When this journal is posted, what entry will be made to the accounts payable control account?

A) Credit $4,800

B) Debit $4,800

C) Credit $7,880

D) Debit $7,880

Table 7-7 Chaney Aircraft Service

 

Chaney Aircraft Service Co. started business on April 1, 2013. They began business with $12,000 in cash and no other assets. During the first month of business, they used a purchase journal and a cash payment journal, and at the end of the month those journals appear as follows:

 

Purchase Journal

 

Date

Supplier Account Credited

Accounts Payable

Inventory Debit

Supplies Debit

Other Accounts Debit

Amount

Apr  2

A1 Products

$2,000

 

$  2,000

 

 

         5

Adams Equip. Co.

5,000

 

 

Equipment

$ 5,000

       11

A1 Products

1,000

 

1,000

 

 

       15

Clark Co.

600

 

 

Repair expense

600

       21

Adams Equip. Co.

2,200

 

 

Equipment

2,200

       22

Martha’s Food Service

70

 

 

Misc. expense

70

 

 

$10,870

$ 0

$  3,000

 

$ 7,870

 

 

Cash Payments Journal

 

Date

Cheque #

Account Debited

Other Accounts Debit

Accounts Payable Debit

Cash Credit

Apr  4

302

Misc. expense

$ 450

 

$   450

         9

303

A1 Products

 

$ 2,000

2,000

       13

304

Adams Equip. Co.

 

5,000

5,000

       20

305

Misc. expense

20

 

20

       24

306

A1 Products

 

1,000

1,000

       29

307

Clark Co.

 

600

600

 

 

 

$ 470

$ 8,600

$ 9,070

 

 

20) Refer to Table 7-7, at the end of April, what was the balance in the accounts payable account?

A) $1,200 debit

B) $3,450 credit

C) $10,870 debit

D) $2,270 credit