1) Process Solutions Company received $193 from a charge customer which was recorded and posted as $391. The journal entry to correct the error is:

a) a credit to Cash for $198 and a debit to Accounts Payable for $198.

b) a debit to Cash for $391 and a credit to Accounts Receivable for $391.

c) a credit to Cash for $198 and a debit to Income from Services for $198.

d) a debit to Cash for $193 and a credit to Accounts Payable for $193.

e) a debit to Accounts Receivable for $198 and a credit to Cash for $198.

2) Lohan Company had the following account balances as of June 30. Cash $29,000 Equipment $15,000 Accounts Payable $2,800 T. Lohan, Capital $62,700 T. Lohan, Drawing $5,000 Income from Services $35,000 Rent Expense $12,000 Salaries Expense $8,000 What is the debit balance of the trial balance?

a) $141,700

b) $136,700

c) $69,000

d) $64,000

3) Rich Company paid transport expenses of $3,000 in cash. Which of the following journal entries records this transaction?

a)Transport Expense $3,000

Cash $3,000

b) Cash $3,000

Transport Payable $3,000

c) Prepaid Expense $3,000

Cash $3,000

d) Transport Expense $3,000

Prepaid Expense $3,000

4) The general ledger shows a complete record of the transactions recorded in each individual account.

False

True