6. The source document should be written in the
A. Date column. C. Doc. No. column.
B. Account Title column. D. Post. Ref. column.

Use the following information to answer questions 7–10.
The following activity for J. C. Breneman Management Services took place on June 1, 20—. Record these transactions on the journal form provided on the next page.
Received $3,290 in cash from the owner as an investment (receipt no. 1). Borrowed $900 cash from Inland Bank for business expenses (memo 1). Paid cash for supplies, $290 (check no. 1).
Paid cash for insurance, $1,000 (check no. 2).
Paid cash for equipment, $2,100 (memo 2).

The Books of Accounting
Journal
Page J1
DATE
ACCOUNT TITLE
Doc. No.
P.R.
DEBIT
CREDIT
7. The correct entry in the date column is for all the transactions is
A. June 1. C. Jan. 31.
B. Dec. 31. D. Dec. 1.
8. The entries for the debit account titles in the “Account Title” column are written
A. about one-half inch away from the left side. B. in pencil so they may be changed later.
C. at the far left side.
D. about one inch away from the left side.
9. The amounts that increase the Cash account are entered in
A. the Debit column.
B. the Credit column.
C. both Debit and Credit columns. D. either Debits or Credit columns.
The Books of Accounting
10. The totals of the entries in the Debit and Credit columns are
A. 12,345.00 in the Debit and 8,220.00 in the Credit columns. B. 7,580.00 in both the Debit and Credit columns.
C. 8,220.00 in the Debit and 6,290.00 in the Credit columns. D. 6,290 in both the Debit and Credit columns.

Doc. No. Column is used to refer to the source document. For example, a document number R1 can be used to indicates that the data is from Receipt No. 1.

Question # 7

Answer: A

As all the transactions were made on June 1, 20.

Question # 8

Answer: C

The debit entries are written on the left side (where the column starts). For visibility, the credit entries are indented more to the right to differentiate them easily.

Question # 9

Answer: A

A debit entry increases an asset or expense account, or decreases a liability or equity account. A credit entry is the opposite of the debit entry. As the amount in cash account increases our assets increases, so we write it in debit column.

Question # 10

Answer: B

Debit entries must equal credit entries for each row of a general journal. Hence, sum (7580) of total entries should be written in both columns.