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
