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Explain the goals and uses of special journals.

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Special journals are used for recording ...

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Define controlling accounts. In what ledger do they appear?

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One difference in the Sales Journal between the perpetual and periodic systems is


A) The column to record cost of goods sold and inventory amounts sold
B) The addition of a sales tax payable column
C) The deletion of a sales tax payable column
D) The column to record cost of goods sold and inventory amounts sold and the deletion of a sales tax payable column
E) The column to record cost of goods sold and inventory amounts sold and the addition of a sales tax payable column

F) C) and D)
G) A) and E)

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Source documents


A) Are input devices
B) Provide basic information processed by an accounting system
C) Can be electronic files
D) Both provide basic information processed by an accounting system and can be electronic files
E) All of these

F) B) and E)
G) C) and D)

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A bookkeeper using a Purchases Journal recorded new store supplies purchased on account. The subledger that would be impacted as a result of this transaction is the


A) Accounts payable subledger
B) Accounts receivable subledger
C) Merchandise inventory subledger
D) Sales subledger
E) Cash receipts journal

F) B) and E)
G) A) and D)

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Sky Waller Company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a Cash Disbursements Journal, a General Journal and a perpetual inventory system. The following transactions were completed by Princess Company during the month of July: Sky Waller Company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a Cash Disbursements Journal, a General Journal and a perpetual inventory system. The following transactions were completed by Princess Company during the month of July: Required: (a) Record the appropriate transactions in the General Journal. (b) For the transactions not recorded in the General Journal, indicate the correct special journal that would be used. Required: (a) Record the appropriate transactions in the General Journal. (b) For the transactions not recorded in the General Journal, indicate the correct special journal that would be used.

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Describe the posting process for special journals.

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Posting to special journals is a three-s...

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The Sales Journal is used for


A) Recording credit purchases
B) Recording credit sales
C) Recording cash sales
D) Recording cash purchases
E) Recording both credit sales and cash sales

F) B) and D)
G) B) and C)

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Accounting information system components include


A) People
B) Input data
C) Software
D) Hardware
E) All of these

F) A) and E)
G) A) and B)

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The Accounts Payable account in the General Ledger is


A) The account that controls the subsidiary accounts payable ledger
B) The account that controls the purchases journal
C) The subsidiary account to the purchases journal
D) Part of a special journal
E) Part of a subsidiary ledger

F) A) and D)
G) None of the above

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Under the perpetual system, special journals are not required.

A) True
B) False

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A Sales Journal is used to record sales of merchandise on credit.

A) True
B) False

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To check for accuracy after posting: first a trial balance is completed, then the subsidiary ledgers are tested by preparing a schedule of the controlling account.

A) True
B) False

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Under the perpetual system cash sales are recorded at the point of sale.

A) True
B) False

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Explain what is meant by footing and cross footing.

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Footing is adding a column of ...

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The Forty-Niner Company uses a periodic system and records its transactions and other events in four special journals and a general journal. The money columns of these journals are numbered as follows: The Forty-Niner Company uses a periodic system and records its transactions and other events in four special journals and a general journal. The money columns of these journals are numbered as follows: Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s) of the columns in which the debit(s) would appear in the column labeled Debits below and by inserting the number(s) of the columns in which the credits would appear in the column labeled Credits below. Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s) of the columns in which the debit(s) would appear in the column labeled "Debits" below and by inserting the number(s) of the columns in which the credits would appear in the column labeled "Credits" below. The Forty-Niner Company uses a periodic system and records its transactions and other events in four special journals and a general journal. The money columns of these journals are numbered as follows: Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s) of the columns in which the debit(s) would appear in the column labeled Debits below and by inserting the number(s) of the columns in which the credits would appear in the column labeled Credits below.

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A subsidiary ledger is a listing of individual accounts with a common characteristic.

A) True
B) False

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If the total balance of the Accounts Receivable Ledger equals the total of the controlling Accounts Receivable account, then the individual accounts are presumed to be correct.

A) True
B) False

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When a business has more than one credit customer, a separate account receivable for each customer must be designed to show all of the following except


A) How much each customer has paid
B) How much each customer has purchased
C) How much sales tax each customer has paid
D) How much remains to be collected from each customer
E) All of these should be included

F) None of the above
G) C) and D)

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A subsidiary ledger


A) Includes transactions not covered by special journals
B) Is a listing of all of the accounts of a business
C) Is a listing of individual accounts with a common characteristic
D) Is a listing of all accounts with balances
E) Is a listing of all special journals

F) B) and E)
G) All of the above

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