Directions: Each of the following statements is true or false. Indicate your choice by writing in the Answers column T for a true answer or F for a false answer. For

Answers Scoring

1.Special journals make record keeping more efficient. ____ _____

2.When a sales journal is used, there is no need to keep a controlling account for Accounts Receivable in the general ledger. ____ _____

3.In special journals, each transaction is usually entered on two lines. ____ _____

4.Each entry in a special journal is posted individually to the general ledger. ____ _____

5.A purchases journal is a special journal used to record cash purchases of merchandise. ____ _____

6.In a sales journal, there are separate columns for each frequently-used

account that will be debited or credited. ____ _____

7.If cash is received from a customer, the customers name should be written

in the Account Credited column of the cash receipts journal. ____ _____

8.A special journal is a journal designed for only certain kinds of transactions. ____ _____

9.When special journals are used, a general journal is also needed. ____ _____

10.The four most common special journals are the sales, cash, purchases, and accounts receivable journals. ____ _____

11.When a company does not have to charge sales tax, its sales journal can

have a combined Debit and Credit column. ____ _____

12.Special journals take the place of subsidiary ledgers. ____ _____

13.Special journals can be created for almost any type of transaction. ____ _____

14.In the cash payments journal, a check mark is used in the Post Reference

column to indicate the amount has been posted to the accounts payable

account in the general ledger. ____ _____

15.At the end of the period, the total of the accounts receivable ledger balances

must equal the Accounts Receivable balance in the general ledger. ____ _____

Section B

Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement.

For

Answers Scoring

1.Which transaction(s) would not be reported in the sales journal? (A) return of merchandise on account; (B) cash sales; (C) sales on account; (D) B & C; (E) A & B. ____ _____

2.Posting to the accounts receivable subsidiary ledger from the sales journal should be done (A) daily; (B) weekly; (C) monthly; (D) annually;(E) quarterly. ____ _____

3.Which of the following is used in the cash receipts journal to indicate that summary totals have been posted to the general ledger? (A) check mark;

(B) CRJ; (C) account number; (D) X; (E) CPJ. ____ _____

4.Which of the following accounts would be found in the purchases journal?

(A) Sales; (B) Cash; (C) Returns and Allowances; (D) Freight-In; (E) none of these. ____ _____

5.The cash payments journal does not include which of the following? (A) the check number; (B) the date paid; (C) the amount of check; (D) a Cash Debit column; (E) an Accounts Payable column. ____ _____

6.A journal designed for entering only sales on account is called the (A) cash receipts journal; (B) accounts receivable journal; (C) sales journal; (D) sales on account journal; (E) general journal. ____ _____

7.Which of the following would indicate posting from the purchases journal?

(A) P1; (B) S2; (C) CR5; (D) CP3; (E) J2. ____ _____

8.Special journals save substantial time because (A) account titles dont have to be written for each entry; (B) summary posting is done monthly; (C) totals are posted instead of individual transactions; (D) all of these; (E) none of these. ____ _____

9.Which of the following would not be entered when a cash receipt is recorded in the cash receipts journal? (A) the date; (B) the amount of credit to Cash; (C) the amount of sales tax payable; (D) the amount of credit to Accounts Receivable; (E) all of these would be entered. ____ _____

10.Posting to the subsidiary journals is not done from the (A) sales journal;

(B) general journal; (C) cash receipts journal; (D) purchases journal;

(E) trial balance. ____ _____

Section C

Directions: Match the journal where each transaction should be recorded. A journal may be used more than one time.

A.sales journal

B.purchases journal

C.cash receipts journal

D.cash payments journal

E.special journal

____ 1. A special journal used to record only sales on account.

____ 2. A journal designed for recording only certain kinds of transactions.

____ 3. A journal used to record only cash payment transactions.

____ 4. A journal used to record purchases on account.

____ 5. A journal used to record only cash receipts transactions.

Section D

Directions: Enter the following transactions in the appropriate journal. Journals are provided below and on the following page.

January 8 Sold merchandise on account to C. Cline, $1,000, plus sales tax of $50. Sale No.

9 M. Romero made $650 payment on account.

14 Cash sales for the week were $2,780, plus sales tax of $139

16 Issued credit memo to C. Cline, $80, plus sales tax of $4.

19 Sold merchandise on account to A. Lee, $1,460, plus sales tax of $73. Sale No. 1475.

20 Received a loan from the bank in the amount of $12,000.