Chapter 4, TEST

Name _________________________
Date _________________________

SCORING RECORD
Section Total Possible Deductions Student Score
A 30
B 10
C 30
Total 70

Section A

Directions: Each of the following statements is true or false. Indicate your choice by writing in the
Answers column T for a true answer or F for a false answer. (2 points for each correct answer)

For
Answers Scoring

1. The chart of accounts is a list of all accounts used by a business. ____ _____
2. Almost any document that provides information about a business
transaction can be called a journal. ____ _____
3. After source documents are used to record a transaction, they should be
destroyed. ____ _____
4. A day-by-day listing of the transactions of a business is called a journal. ____ _____
5. Only entries that affect cash may be recorded directly in the general ledger. ____ _____
6. Entering the transactions in a journal is called journalizing. ____ _____
7. A posting reference indicates a journal entry has been posted to the general
ledger. ____ _____
8. The general ledger is used to keep track of the current balance in each
account. ____ _____
9. When every transaction is entered into a journal, it is important to include
the month, the day, and the year as part of the entry. ____ _____
10. When making a journal entry, all debited accounts must be listed before
any credited accounts are listed. ____ _____
11. It is easier to maintain a running balance with a T account than it is with a
ledger account. ____ _____
12. The account number used in the heading of the four-column ledger account
is taken from the chart of accounts and is used in the posting process. ____ _____
13. It is necessary to post journal entries to the general ledger before preparing
a trial balance. ____ _____
14. A trial balance must be prepared weekly. ____ _____
15. If an incorrect entry has been journalized and posted to the wrong account,
you should erase the incorrect information and replace it with the correct

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 4-2

information. ____ _____

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 4-3

Section B

Directions: In the two-column general journal page below, each capital letter represents a part of a journal
entry. Indicate with the proper letter next to the item in the list below where that part of the journal entry
belongs. (1 point each)

GENERAL JOURNAL

G
HI J O M
K P N
L

____ 1. Explanation
____ 2. Ledger account number of account debited
____ 3. Amount of debit
____ 4. Day of the month
____ 5. Ledger account number of account credited
____ 6. Title of account debited
____ 7. Year
____ 8. Title of account credited
____ 9. Amount of credit
____ 10. Month

Section C

Esther Chai owns Chai’s Accounting Services. She provides accounting services for small businesses and
charges her clients consulting fees for the services she performs for them. Esther has a part-time accounting
clerk who enters the information into the computerized general ledger. The company’s chart of accounts is
as follows:

Assets Revenue
100 Cash 400 Consulting Fees
120 Accounts Receivable
130 Office Supplies
140 Computer Equipment
145 Computer Software Expenses
510 Wages Expense
Liabilities 520 Rent Expense
200 Accounts Payable 530 Utilities Expense

Owner’s Equity
300 E. Chai, Capital
310 E. Chai, Drawing

Directions: Enter the following transactions in the general journal provided on the next page. (30 points
total)

March 1 Because the company’s cash was getting low, Esther Chai invested $4,500 additional cash in
her business.
6 Purchased office supplies on account, $750.
7 Paid office rent for the month, $900.
14 Completed consulting work for a client, who agreed to pay the $2,750 fee by the end of the
month.

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 4-4

March 17 Purchased new computer software, $825.

20 Paid wages to the accounting clerk for part-time work, $700.
23 Paid utilities for the month, $180.
28 Owner withdrew cash for personal use, $200.
30 Received cash for consulting fees recorded on March 14, $2,750.
31 Purchased a new computer for $400 cash and $600 on account.

GENERAL JOURNAL
POST
DATE DESCRIPTION REF DEBIT CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.