Jan 01 The new owners of OPJ invest $75,000 of cash in the business. $70,000 of the cash is deposited in Big Bank; the rest is deposited in Little Bank. OPJ issues shares of Common Stock to the new owners. Highlight True or False for the following questions: T F 1. In a traditional accounting system all entries must be first put in the General Journal. T F 2. Entries are posted from the General Journal to the Trial Balance. F 3. The Note Payable account is increased by a Debit entry. T F 4. The Equipment account is increased by a Debit entry. TF 5. All entries must affect both the Asset side and the Liabilities + Equity side of the accounting equation for the accounting system to stay in balance. TF 6. The Inventory account is decreased by a Credit entry. T F 7. The Balance Sheet is a point-in-time financial report. T TI 8. A company's Accounting Period must always be one month long. T F 9. The sequence of steps a company's accounting system goes through each Accounting Period is called the Accounting Cycle. TF 10. The largest transaction occurring during the Accounting Period is always entered first in the General Journal. TF 11. For each entry in the General Journal, the total dollar amount of the debits and the total dollar amount of the credits must always be equal. TF 12. The Balance Sheet is produced from the account balances shown in the General Journal. TF 13. The Balance Sheet is produced from the account balances shown in the General Ledger T F 14. The primary reason the accountant prepares a Trial Balance is to determine if the accounting system is in balance