Recording, journalizing, and posting transactions for a synoptic journal of a professiona
Recording, journalizing, and posting transactions for a synoptic journal of a professional service company using a modified cash basis of accounting.
1) One advantage a synoptic journal has over the general journal is that it
A) does not require an understanding of accounting.
B) eliminates the need of a general ledger.
C) reveals more information about a transaction.
D) saves time in posting, recording and journalizing.
2) When using a synoptic journal, the bank balance can be calculated
A) only at the end of the month.
B) only at the end of the week.
C) after totals are proved.
D) at any time.
3) To prove the synoptic journal, the total debits must equal
A) the cash paid.
B) the cash received.
C) total credits.
D) the Sundry column.
4) How is a synoptic journal proved?
A) By comparing total cash paid out with the total cash received
B) By comparing the total debits with the total credits
C) By comparing the Sundry column with the Cash column
D) By comparing the total debits with the cash received
5) The total of the Sundry column is
A) posted on a daily basis.
B) posted as a total at the end of the month.
C) not posted.
D) posted at the end of the year.
6) Instead of using subsidiary ledgers, the modified cash-basis might use
A) memorandum records.
B) special records.
C) synoptic schedules.
D) special ledgers.
7) Under the cash-basis method, the owner's portion of CPP, as well as EI, is
A) not recorded until paid.
B) recorded when incurred.
C) recorded when submitting the T4-T4A Summary.
D) withheld from employees.
8) The entry to record the payment of the employer's CPP and EI contributions using the cash-basis method would be
A) debit Payroll Tax Expense, credit Cash.
B) debit CPP Payable, credit Cash.
C) debit EI Payable, credit Cash.
D) debit Cash, credit Payroll Tax Expense.
9) When using a synoptic journal, adjusting and closing entries are recorded
A) in the general journal.
B) in the Sundry column of the synoptic journal.
C) in the cash payments journal.
D) are not recorded when a synoptic journal is used.
10) Dr. Luther deposited $5,000 cash in her dental practice. She uses a synoptic journal under a modified cash system. How would this transaction be recorded?
A) Debit Luther, Capital $5,000 in the Sundry column, credit Cash $5,000
B) Debit Cash $5,000, credit Professional Fees $5,000
C) Debit Professional Fees $5,000, credit Cash $5,000
D) Credit Luther, Capital $5,000 in the Sundry column, debit Cash $5,000 in the Cash column