Question

A corporate customer stopped by to check in for her reservation for four nights at Redwood Falls Inn. Kevin had already charged the whole amount for the customer's stay to the corporate account, but the customer wanted to pay a $275 deposit for the room. Which T-Account or T-Accounts correctly show how to record a deposit for a sale on account?
Before closing the office for the day, Lisa took a phone call from a corporate customer who wanted to make a reservation for three nights at Wildwood Inn. The total cost came to $473.00. The customer asked Lisa to charge the total amount to the company's account. Which T-Account or T-Accounts listed below correctly show how a sale on account should be recorded?
A woman stopped in at the hotel lobby to see if there was room for her tonight and the next night. The hotel manager, Barbara, confirmed that she did have a vacancy. The total cost for the two nights totaled $225.00. The customer paid the total balance using cash. Which T-Account or T-Accounts listed below correctly show how a cash sale should be recorded?
Which of the following characteristics is not associated a general journal?
A) It is used daily to record transactions.
B) The amount credited equals the amount debited.
C) Transactions are ordered from greatest to smallest.
D) Events are listed in chronological order.
Which of the following characteristics is associated with a general journal?
A) This is also known as the posting book.
B) There are different accounts for accounts receivable and accounts payable.
C) Tuesday’s records would follow Monday’s records.
D) Each account contains a rolling balance.
Which of the following characteristics is associated with a general ledger?
A) It is the initial documentation of a financial transaction as it originates.
B) If it is May, then the accounting transactions for February, March, April and May are listed.
C) This is also known as the original book of entry.
D) It is categorized by account.

Answer 1

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.