Unit Review Sheet Answers
Chapter 4/Unit 6
Review Sheet 6/The Journal
K, C, A 1. Frank Arzillo opened the Arzillo TV Repair Shop on November 1. On the form at the end of this
review sheet, journalize the November transactions, using appropriate accounts.
Nov. 1 Arzillo invested $5000 cash in the business.
1 Borrowed $6000 from Royal Bank.
2 Purchased equipment for $4000 (analysis kit), Cheque 1.
4 Received $700 cash for repair services performed during the week, Cash Sales
Slips 1–5.
5 Paid $300 for advertising in the Kingston Whig Standard, Cheque 2.
6 Charged supplies worth $300 with Electronics Co. Ltd., Invoice 4264.
8 Repaired a TV set for V. Milligan, who will pay the $40 fee at a later date, Invoice 1.
9 Paid $100 to reduce the amount owing to Electronics Co. Ltd., Cheque 3.
10 Bought a $17 000 station wagon for the business. Paid $3000 as a down payment to
Learn Motors, Cheque 4. The balance owing is $14 000.
15 Received $40 from V. Milligan for Invoice 1.
K, C 2. Explain the following terms.
A chronological record of transactions.
journal: _______________________________________________________________________
Recording transactions in a journal.
journalizing: ___________________________________________________________________
K, C 3. List the four steps followed in recording a journal entry.
Step 1: Record the date.
______________________________________________________________________________
Step 2: Record the debit(s).
______________________________________________________________________________
Step 3: Record the credit(s).
______________________________________________________________________________
Step 4: Write the explanation.
______________________________________________________________________________
K, C 4. What are the advantages of using a journal?
(1) The complete transaction is recorded in one place.
______________________________________________________________________________
(2) Reduces errors in recording debits and credits.
______________________________________________________________________________
(3) Is a chronological history of transactions.
______________________________________________________________________________
(4) Owner can determine volume of business easily.
______________________________________________________________________________
(5) Provides a picture of each day’s business.
______________________________________________________________________________
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
1
Chapter 4/Unit 6
2
Review Sheet 6/The Journal (cont.)
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario