Question

journal entry questions

Answer 1

1. Describe the purpose and structure of a journal entry.
2. Identify the purpose of a journal.
3. Define “trial balance” and indicate the source of its monetary balances.
4. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise.
5. Define “accrual accounting” and list its two components.
6. Explain the purpose of the revenue realization principle.
7. Explain the purpose of the matching principle.