Question : 11) A $300 receipt of cash account was recorded as : 1212521

11) A $300 receipt of cash on account was recorded as a $500 debit to cash and a $500 credit to accounts receivable. This error will cause:

A) cash to be overstated $200.

B) cash to be understated $500.

C) cash to be understated by $800.

D) accounts receivable to be overstated $500.

12) Recording service revenue on account as a cash transaction will cause:

A) accounts receivable to be overstated.

B) owner’s equity to be understated.

C) cash to be overstated.

D) service revenue to be understated.

13) Recording salaries paid to employees as a debit to accounts receivable and a credit to cash will cause:

A) accounts receivable to be understated.

B) total credits on the trial balance to be understated.

C) salary expense to be understated.

D) total debits on the trial balance to be overstated.

14) If the credit amount of an entry to record the purchase of supplies on account was not posted:

A) liabilities would be unaffected.

B) assets would be understated.

C) owner’s equity would be understated.

D) liabilities would be understated.

15) If the credit amount of an entry to record the payment of salaries was not posted:

A) assets would be overstated.

B) assets would be unaffected.

C) liabilities would be understated.

D) assets would be understated.

16) Posting involves:

A) transferring information from the general journal to the general ledger.

B) using information from the general ledger to prepare the trial balance.

C) using information from the general ledger to prepare the financial statements.

D) transferring information from the general ledger to the general journal.

17) The posting reference column in the general journal is used to:

A) indicate if the account is an asset, a liability, or an owner equity.

B) provide space for the bookkeeper to initial the transaction.

C) record the page number of the general journal.

D) record the account number of the general ledger account.

18) A business has the following transactions:  The business is started by receiving $20,000 from the owner.  The business purchases $500 of supplies on account. The business purchases $2,000 of furniture on account.  The business renders services to various clients totaling $9,000 on account. The business pays out $2,000 for Salary expense and $3,000 for Rent expense. The business pays $500 to a supplier for the supplies purchased earlier. The business collects $1,500 from one of its clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger.  The Cash account will appear as follows:

A)

 

B)

 

C)

 

D)

Match the following.

 

A) posting

 

19) Transferring the amount from the journal to the ledger

20) Following is a list of errors made during the posting process. Indicate the exact dollar impact each error would have on (1) total assets, (2) total liabilities, and (3) owner’s equity.

a) A $600 debit to the accounts payable account was posted as a $400 debit.

b) A $700 credit to cash was never posted.

c) A $2,000 debit to the withdrawals account was posted as a $2,200 debit.

d) A $1,700 credit to the revenue account was debited to the revenue account.

e) A $4,000 debit to the land account was debited to an expense account instead.

 

Error

Assets

Liabilities

Owner’s Equity

a)

 

 

 

b)

 

 

 

c)

 

 

 

d)

 

 

 

e)