Acct 11
Chp. 7 Review
1. Complete the following sentences by inserting the correct word or words in the blanks.
forwarding
erase
ledger
balance column
page number
a)The most commonly used form of ledger account is the _____________________________ account.
b)In the posting reference (PR) column of the account, the accountant writes the __________________ of the
journal.
c)The process of transferring certain information from the bottom of the completed page to the top
of a new page is called __________________.
d)Over the years, professional accountants have made it a rule never to __________________ in the books of
account.
e)It is customary to number the accounts in the __________________ so they are easier to identify.
2.When examining a general journal, how can an accountant tell if an entry has been posted?
3. Complete the following chart to show the effect of errors on a trial balance.
Trial balance will not balance
Debits greater
than credits by
($)
Error Situation
Credits greater
than debits by
($)
1. An $80 debit is posted as $800.
$
$
2. An entire general journal entry for
$80 is not posted.
$
$
3. The Wages Expense account balance
of $22 000 is listed on the trial balance
as a credit.
$
$
4. An entire general journal entry for
$200 is posted in reverse, that is, the
debit amount was posted to the credit
account, and the credit amount was
posted to the debit account.
$
$
5. A $500 credit is posted as a debit.
$
$
6. The Bank account is understated
by $160.
$
$
7. The Drawings account balance of
$3 500 is listed on the trial balance
as a credit.
$
$
Trial balance will
balance but will not
be correct
()
4. Using the quick tests for locating errors, find the error in the question below and make
corrections.
a. Describe the error:
b. What method did you use to find it?
GENERAL JOURNAL
PARTICULARS
Bank
Equipment
Capital
DEBIT
CREDIT
6 0 0 0 –
3 0 0 0 –
9 0 0 0 –
Supplies
Accounts Payable
1 0 0 –
Expense
Bank
2 5 0 –
Accounts Receivable
Revenue
1 6 8 –
1 0 0 –
2 5 0 –
1 6 8 –
5 0 –
Bank
5 0 –
Accounts Receivable
Drawings
Bank
7 2 –
7 2 –
Bank
Accounts Receivable
6 000 –
50 –
250 –
72 –
168 –
6 050 –
322 –
118 –
Supplies
50 –
100 –
5 728 –
Equipment
Accounts Payable
3 000 –
Capital
100 –
Drawings
9 000 –
Revenue
72 –
Expense
168 –
205 –
Trial Balance
Accounts
Bank
Accounts Receivable
Supplies
Equipment
Accounts Payable
Capital
Drawings
Revenue
Expense
DEBIT
CREDIT
5 728 –
118 –
100 –
3 000 –
100 –
9 000 –
72 –
168 –
205 –
9 223 –
9 268 –
5. Using
the quick tests for locating errors, find the error in the question below and make
corrections.
a. Describe the error:
9 223–
b. What method did you use to find it?
- 45–
9 268–
GENERAL JOURNAL
PARTICULARS
DEBIT
CREDIT
3 5 0 0 –
6 0 0 0 –
Bank
Equipment
Capital
9 5 0 0 –
2 7 9 –
Bank
2 7 9 –
Revenue
Drawings
Bank
8 6 –
Expense
Bank
1 2 5 –
Expense
Accounts Payable
2 9 7 –
Accounts Receivable
Revenue
1 1 0 –
8 6 –
1 2 5 –
2 9 7 –
1 1 0 –
6 3 –
Supplies
Bank
6 3 –
Bank
Accounts Receivable
3 500 –
279 –
86 –
125 –
63 –
3 779 –
274 –
110 –
Supplies
63 –
3 405 –
Equipment
Accounts Payable
6 000 –
Drawings
86 –
Capital
297 –
Revenue
9 500 –
Expense
279 –
110 –
389 –
125 –
297 –
422 –
Trial Balance
Accounts
DEBIT
CREDIT
3 405 –
110 –
63 –
6 000 –
Bank
Accounts Receivable
Supplies
Equipment
Accounts Payable
Capital
Drawings
Revenue
Expense
297 –
9 500 –
86 –
389 –
422 –
10 086 –
10 186 –
6. In the account below, complete the Debit/Credit and Balance columns.
ACCOUNT
A/R—Ann Wood
DATE
20—
Jun.
PARTICULARS
NO. 109
P.R.
DEBIT
CREDIT
J17 10 086–
9 7 5 —
J22
- 100–
J25
7
5
24
Dr/Cr
BALANCE
10 186–
6 0 0 —
4 0 0 —
7. In the account below, calculate the balance for September 16, 20—. Then perform the forwarding
procedures required to start a new account page.
ACCOUNT
A/R—Manitoba Equipment Co.
DATE
PARTICULARS
P.R.
DEBIT
20—
Aug.
Sep.
15
4
16
NO. 211
CREDIT
Dr/Cr
BALANCE
1 6 0 0—
J22
J26
J30
8 2 5—
1 7 6—
ACCOUNT
NO.
DATE
PARTICULARS
P.R.
DEBIT
CREDIT
Dr/Cr
BALANCE
8. On April 18, 20—, an accounting clerk discovered that a purchase invoice for $400 was credited
to the wrong account payable. This invoice was from McKill Marketing, but had been credited
to A/P–Murray’s Stationery. Prepare a correcting entry below.
GENERAL JOURNAL
DATE
PARTICULARS
PAGE _____
P.R.
DEBIT
CREDIT
9. Post the following journal entries for Dave Carson, an accountant, and take off a trial balance on
the form provided. GST and PST accounts are not included.
GENERAL JOURNAL
DATE
PARTICULARS
P.R.
1
PAGE _____
DEBIT
20—
Mar.
Apr.
31 Bank
A/R—Jim Larue
A/R—Lily Ing
Supplies
Office Equipment
A/P—Tyler Supplies
Bank Loan
Dave Carson, Capital
5 0 0
1 2 0
7 0
9 0
4 2 0
0
0
0
0
0
CREDIT
–
–
–
–
–
6 0 0 –
4 0 0 0 –
7 4 0 0 –
4 0 0 –
1 Bank
A/R—Jim Larue
4 0 0 –
5 A/P—Tyler Supplies
Bank
3 0 0 –
8 A/R—Lily Ing
Fees Earned
4 0 0 –
3 0 0 –
4 0 0 –
5 0 0 –
10 Dave Carson, Drawings
Bank
5 0 0 –
1 0 0 0 –
15 Bank
Bank Loan
DATE
PARTICULARS
20—
Apr.
1 0 0 0 2–
PAGE _____
GENERAL JOURNAL
22 General Expense
Bank
P.R.
DEBIT
7 5 –
7 5 –
28 Bank
Dave Carson, Capital
Office Equipment
4 0 0 –
1 0 0 –
30 Bank
8 0 0 –
A/R—J. Larue
LEDGER begins on next page
CREDIT
5 0 0 –
8 0 0 –
ACCOUNT
DATE
ACCOUNT
DATE
ACCOUNT
DATE
ACCOUNT
DATE
ACCOUNT
Bank
PARTICULARS
PARTICULARS
DEBIT
CREDIT
Dr/Cr
PARTICULARS
P.R.
DEBIT
CREDIT
Dr/Cr
P.R.
DEBIT
CREDIT
Dr/Cr
A/P—Tyler Supplies
DATE
PARTICULARS
P.R.
DEBIT
CREDIT
Dr/Cr
BALANCE
NO. 150
P.R.
DEBIT
CREDIT
Dr/Cr
BALANCE
NO. 201
P.R.
DEBIT
CREDIT
Dr/Cr
Bank Loan
PARTICULARS
BALANCE
NO. 120
Office Equipment
ACCOUNT
BALANCE
NO. 107
Supplies
PARTICULARS
BALANCE
NO. 105
A/R—Lily Ing
PARTICULARS
DATE
P.R.
A/R—Jim Larue
DATE
ACCOUNT
NO. 101
BALANCE
NO. 220
P.R.
DEBIT
CREDIT
Dr/Cr
BALANCE
Dave Carson, Capital
Dave Carson, Capital
ACCOUNT
ACCOUNT
DATE
DATE
PARTICULARS
PARTICULARS
NO. 301
P.R.
P.R.
DEBIT
DEBIT
Dave Carson, Drawings
Dave Carson, Drawings
CREDIT
CREDIT
NO. 301
Dr/Cr
Dr/Cr
BALANCE
ACCOUNT
ACCOUNT
DATE
DATE
PARTICULARS
PARTICULARS
P.R.
P.R.
Fees Earned
Fees Earned
NO. 302
NO. 302
DEBIT
DEBIT
CREDIT
CREDIT
Dr/Cr
Dr/Cr
DATE
DATE
NO. 401
NO. 401
PARTICULARS
PARTICULARS
P.R.
P.R.
DEBIT
DEBIT
CREDIT
CREDIT
Dr/Cr
Dr/Cr
General Expense
General Expense
DATE
DATE
NO. 501
NO. 501
PARTICULARS
PARTICULARS
Accounts
BALANCE
BALANCE
ACCOUNT
ACCOUNT
BALANCE
BALANCE
ACCOUNT
ACCOUNT
BALANCE
P.R.
P.R.
DEBIT
DEBIT
DEBIT
CREDIT
CREDIT
Dr/Cr
Dr/Cr
BALANCE
BALANCE
CREDIT