Answer:
1. Redwood Falls Inn: The correct T- account is Service Revenue Account.
The $275 deposit is credited to this account to reduce the amount already charged to the customer's account.
2. Wildwood Inn: The correct T- account is Service Revenue
3. The Cash Sale of $225 should be recorded in Cash Account T-account.
4. Characteristics not associated with a general journal:
C) Transactions are ordered from greatest to smallest.
5. Characteristics associated with a general journal:
A) This is also known as the posting book.
C) Tuesday’s records would follow Monday’s records.
6. Characteristics associated with a general ledger:
B) If it is May, then the accounting transactions for February, March, April and May are listed.
D) It is categorized by account.
Explanation:
1. A T-account is an accounting tool for analyzing a set of financial records using the double-entry bookkeeping system.
2. A posting book is a book of original entry of transactions. It is from the posting books that transactions are posted to the general ledger.
3. A general ledger (GL) is a set of numbered accounts used to track financial transactions and to prepare financial reports. Each account in the general ledger is a unique record summarizing the type of asset, liability, equity, revenue, and expense accounts.
