Recording, journalizing, and posting transactions for a synoptic journal of a merchandising company using the accrual basis of accounting.
1) Rita Knauss invested $2,000 cash and $3,000 worth of office equipment in her new advertising agency business. The transaction would be recorded in a synoptic journal under the accrual basis, as follows:
A) debit Cash $2,000, debit Office Equipment $3,000, credit Knauss, Capital $5,000.
B) debit Knauss, Capital $5,000, credit Office Equipment $3,000, credit Cash $2,000.
C) debit Investment $5,000, credit Knauss, Capital $5,000.
D) debit Sundry $5,000, credit Knauss, Capital $5,000.
2) Barbara's Bakery sold $300 of rolls to Tommy's Sandwich Shop on account. Barbara records this transaction in a synoptic journal under the accrual basis as follows:
A) debit Sales $300, credit Accounts Receivable $300.
B) debit Cash $300, credit Sales $300.
C) debit Accounts Receivable $300, credit Sales $300.
D) debit Accounts Payable $300, credit Sales $300.
3) At the beginning of the month, Seymour's Rack Co. paid $3,600 cash for a one-year fire insurance policy. How would one month's insurance expense be recorded in a synoptic journal under the accrual basis?
A) Debit Insurance Expense $300 in the Sundry column and credit Prepaid Insurance $300 in the Sundry column
B) Debit Insurance Expense $3,600 and credit Prepaid Insurance $3,600 in the Sundry column
C) Debit Insurance Expense $300 in the Sundry column, credit Cash $300
D) Cannot record this transaction in a synoptic journal
4) Which of the following would not be a column used in the synoptic journal of a merchandising business?
D) Amortization Expense
5) A transaction that has a debit to accounts receivable would require a posting to
A) the accounts receivable ledger immediately.
B) the accounts receivable ledger at the end of the month.
C) the accounts receivable account in the general ledger immediately.
D) the accounts receivable account in the general ledger on a weekly basis.
6) Which of the following is true?
A) Synoptic journals are less efficient than special journals.
B) The total of the Cash column would be posted daily.
C) The total of the Sales column is not posted.
D) The total of the Sundry column is not posted.
7) The Sundry columns in the synoptic journal are used to record transactions that do not have a special column.
8) The Accounts Payable debit column in the synoptic journal is used to record amounts owed to creditors.
9) The synoptic journal could have a special column for GST/HST Payable.
10) The headings for the synoptic journal are designed to meet the individual needs of each business.
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