Journalizing Transactions

Transactions are recorded in a journal in chronological order

• True

• False

The source document used when supplies are bought on account is a memorandum.

• True

• False

To correct an error in a journal, one can simply erase the incorrect item and write the correct item

• True

• False

A receipt is the source document for cash received from transactions other than sales.

• True

• False

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

• True

• False

A transaction recorded in a journal is not considered a permanent record.

• True

• False

A general journal page is complete when there is insufficient space to record any more entries

• True

• False

When an entry in an amount column is an even dollar amount, either “00” or “--” can be entered in the cents column.

• True

• False

The entry to record payment of cash to the owner as a withdrawal of equity is

• debit Cash, credit Drawing.

• debit Drawing, credit Cash.

• debit Cash, credit Accounts Payable.

• none of these.

If an error is recorded in a journal entry,

• cancel the error by drawing a neat line through the error.

• correct the entry by writing the correct item above the canceled error.

• do not erase the incorrect item.

• all of these.