Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
46) A business collects cash from a customer for services that were performed one month earlier. Which
of the following accounts is credited?
A) Cash
B) Accounts Receivable
C) Service Revenue
D) Accounts Payable
47) A business borrows cash by signing a note payable. Which of the following accounts is debited?
A) Notes Payable
B) Accounts Payable
C) Notes Receivable
D) Cash
48) A business borrows cash by signing a note payable. Which of the following accounts is credited?
A) Notes Payable
B) Accounts Payable
C) Notes Receivable
D) Cash
49) A business repays the amount borrowed on a note with cash. Which of the following accounts is
debited?
A) Cash
B) Accounts Payable
C) Notes Payable
D) Notes Receivable
50) A business repays the amount borrowed on a note with cash. Which of the following accounts is
credited?
A) Accounts Payable
B) Cash
C) Notes Payable
D) Notes Receivable
51) On October 31, a business pays $1,500 cash for television ads that appeared during October. Which of
the following accounts is debited?
A) Cash
B) Accounts Payable
C) Prepaid Advertising
D) Advertising Expense
52) A business makes a payment in cash for advertising expense. Which of the following accounts is
credited?
A) Prepaid Advertising
B) Accounts Receivable
C) Cash
D) Advertising Expense
53) A cash payment of $5,000 was made for dividends. Which of the following accounts is debited?
A) Cash
B) Dividends
C) Dividend Expense
D) Common Stock
54) A business pays cash for dividends. Which of the following accounts is credited?
A) Common Stock
B) Dividends
C) Cash
D) Retained Earnings
55) An accounting entry that is characterized by having multiple debits and/or multiple credits is called a
________ entry.
A) balanced
B) posted
C) chart of accounts
D) compound journal
56) A business makes a payment of $1,400 on a note payable. Which of the following journal entries
would be recorded?
A) Cash is credited and Notes Payable is debited for $1,400.
B) Notes Payable is credited and Cash is debited for $1,400.
C) Cash is credited and Financing Expense is debited for $1,400.
D) Cash is debited and Financing Revenue is credited for $1,400.
57) A business purchases equipment by paying $6,276 in cash and issuing a note payable of $19,177.
Which of the following occurs?
A) Cash is credited for $6,276, Equipment is credited for $25,453, and Notes Payable is debited for
$19,177.
B) Cash is credited for $6,276, Equipment is debited for $25,453, and Notes Payable is credited for $19,177.
C) Cash is debited for $6,276, Equipment is debited for $19,177,and Notes Payable is credited for $25,453.
D) Cash is debited for $6,276, Equipment is credited for $19,177, and Notes Payable is debited for $12,901.
58) Which of the following journal entries would be recorded if a business purchased $800 of office
supplies on account?
A)
Accounts Payable
800
Office Supplies
800
B)
Office Supplies
800
Accounts Payable
800
C)
Office Supplies
800
Cash
800
D)
Cash
800
Office Supplies
800
59) Which of the following journal entries would be recorded if a business performs services and receives
cash of $900 from the customer?
A)
Service Revenue
900
Cash
900
B)
Accounts Receivable
900
Service Revenue
900
C)
Cash
900
Service Revenue
900
D)
Service Revenue
900
Accounts Receivable
900
60) Which of the following journal entries would be recorded if a business purchased office supplies on
account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle
the account?
A)
Cash
750
Accounts Payable
750
B)
Accounts Payable
750
Cash
750
C)
Office Supplies
750
Cash
750
D)
Accounts Payable
750
Office Supplies
750
61) Which of the following journal entries would be recorded if a corporation issued common stock and
received $3,000?
A)
Cash
3,000
Common Stock
3,000
B)
Cash
3,000
Service Revenue
3,000
C)
Common Stock
3,000
Cash
3,000
D)
Cash
3,000
Unearned Revenue
3,000
62) A business purchased land for $250,000 cash. Record the transaction in the journal.
63) A business performs services for its customer for $50,000 on account. Record the transaction in the
journal.
64) Employees worked and a business paid salaries of $6,000 in cash. Record the transaction in the
journal.
65) List the four parts of a journal entry.
66) List the five steps of the journalizing and posting process.
67) For each transaction, identify which account is debited and which account is credited. Use proper
account titles.
Transaction
Debit
Credit
Received cash on account from a
customer
Paid cash dividends to
stockholders
Purchased office supplies on
account
Received cash from customers for
services to be performed next
month
Paid employee's salary
