A completed general journal page should always be reviewed to be sure that all postings

have been made.

A sales return that credits the customer’s account is recorded in the general journal.

Credit allowed for part of the purchase price of merchandise that is not returned does not change the balance of the customer’s accounts payable.

A corporation’s Dividends account is a temporary account.

The normal account balance of Purchases Returns and Allowances is a debit.

An entry in the general journal that affects Accounts Payable also affects a vendor’s account in the accounts payable ledger.

An entry recorded in a general journal will increase the account debited and decrease the account credited.

A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.

Dividends can be distributed to stockholders only by formal action of a corporation’s board of directors.

The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves Accounts Receivable and the subsidiary ledger accounts.

Net income increases a corporation’s total stockholders’ equity.

A credit memorandum issued by a vendor results in the vendor recording a credit to the customer’s account.

The stockholders’ equity account, Dividends, has a normal credit balance.

A credit memorandum prepared by a customer results in the customer recording a debit to the vendor account.

A corporation can decide if and when to declare a dividend.

The normal account balance of Sales Returns and Allowances is a credit.

Most corporations pay dividends by writing checks to stockholders on the day after the dividends are declared.

Transactions that cannot be recorded in a special journal are recorded in a general journal.

Entries in the general journal only affect account balances in general ledger accounts.

What accounts are effected by the following transaction:

4. Bought office supplies on account from Lambert Industries, $225.00. M56.

What accounts are effected by the following transaction:

9. Granted credit to Harris Company for damaged merchandise, $350.00, plus sales tax, $21.00, from S443;

total, $371.00. CM22.

Given the following transaction, select the correct way to debit and credit the transaction.

The board of directors declared a dividend of $0.60 per share; capital stock issued is 5,000 shares. M57.

How would you record the following transaction?

Learned that a sale on account to Testor Manufacturing was incorrectly charged to the account of Trainer

Corporation, $450.00. M58.