Question 2-11A journal provides a chronological record of all transactions affecting a firm. A journal entry isused to describe the format for recording a transaction.Question 2-12Question 2-13In each journal entry, the sum of all amounts debited equals the sum of all amounts credited.DateDebitCreditAccount Name . . . . . . . . . . . . . . . . . . . . . .AmountAccount Name . . . . . . . . . . . . . . .Amount(Description of transaction) Show Chapter 02 - The Accounting Information System2-6Question 2-14(a)DebitCreditCash1,200Service Revenue1,200(Receive cash from providing services)(b)DebitCreditRent Expense500Cash500(Pay rent for the current month)(c)DebitCreditBuilding10,000Notes Payable10,000(Purchase building with note payable) Chapter 02 - The Accounting Information System2-7answers to Review Questions (continued)Question 2-15(a) Purchase supplies by paying cash of $20,000.(b) Provide services to customer on account for $30,000.(c) Pay cash on accounts payable of $10,000.Question 2-16A T-account is an informal means to show the balance in an account. The left side is referred toas adebitand the right side is referred to as acreditQuestion 2-17Posting isthe process of transferring the debit and credit information from the journal toindividual accounts in the general ledger.(a)SuppliesCash20,00020,000(b) Accounts ReceivableService Revenue30,00030,000(c)Accounts PayableCash10,00010,000. Chapter 02 - The Accounting Information System2-8Question 2-18The general ledger is the collection of all accounts used to record the company’s transactions.Achart of accounts is a listing of all account names.Question 2-19A trial balance is a list of all accounts and their balances at a particular date. Balance refers to thefact that the sum of the accounts with debit balances should equal the sum of the accounts with creditbalances.Question 2-20Not necessarily. While total debits equaling total credits is a good indication that all accountshave been appropriately accounted for, the accounts could contain offsetting errors. For example, ifone account with a debit (credit) balance is understated by the same amount that another accountwith a debit (credit) balance is overstated, the trial balance will show equal debit and credit totals.BRIEF ExercisesBrief Exercise 2-1Proper order:(c) Use source documents to identify accounts affected by externaltransactions.(d) Analyze the impact of the transaction on the accounting equation.(b) Assess whether the impact of the transaction results in a debit orcredit to the account balance.(f) Record transactions using debits and credits.(a) Post the transaction to the T-account in the general ledger.(e) Prepare a trial balance. Chapter 02 - The Accounting Information System2-9Brief Exercise 2-2Assets=Liabilities+Stockholders’EquityPossible(Yes/No)(a)Increase=Decrease+No changeNo(Cash ↑)(Accounts Payable ↓)(b)No change=Increase+IncreaseNo(Salaries Payable ↑)(Service Revenues ↑)(c)Decrease=No Change+DecreaseYes(Cash ↓)(Advertising Expense ↑)Brief Exercise 2-3Total AssetsTotal Liabilities andStockholders’ EquityCash$6,200Accounts Payable$1,200Supplies1,600 Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document Is a ledger in chronological record of transactions?The general ledger is a collection of the firm's accounts. While the general journal is organized as a chronological record of transactions, the ledger is organized by account. In casual use the accounts of the general ledger often take the form of simple two-column T-accounts.
What is a chronological record of all transactions?A journal, also known as Books of Original Entry, keeps records of business transactions in a systematic order. Transactions are recorded in the journal in chronological order, i.e. as they occur; one after the other.
Are transactions recorded in chronological order?In journalizing, transactions are recorded at the date the transaction was made thus, it is recorded in chronological order.
Which of the following is used to provide a chronological record of all transactions affecting a firm?A journal provides a chronological record of all transactions affecting a firm.
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True or false: a ledger provides a chronological record of all transactions affecting the firm.
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