103)
Golddigger Services Inc. provides services to clients. On May 1, a client prepaid Golddigger
Services $60,000 for 6-months services in advance. Golddigger Services’ general journal entry to
record this transaction will include a:
A)
Debit to Management Fees Earned for $60,000.
B)
Credit to Management Fees Earned for $60,000.
C)
Credit to Unearned Management Fees for $60,000.
D)
Credit to Cash for $60,000.
E)
Debit to Unearned Management Fees for $60,000.
104)
Willow Rentals purchased office supplies on credit. The general journal entry made by Willow
Rentals will include a:
A)
Debit to Accounts Receivable.
B)
Credit to Accounts Payable.
C)
Credit to Willow, Capital.
D)
Debit to Accounts Payable.
E)
Credit to Cash.
105)
An asset created by prepayment of an insurance premium is:
A)
Recorded as a credit to Prepaid Insurance.
B)
Recorded as a credit to Unearned Revenue.
C)
Recorded as a debit to Prepaid Insurance.
D)
Not recorded in the accounting records until the insurance period expires.
E)
Recorded as a debit to Unearned Revenue.
106)
Richard Redden contributed $70,000 in cash and land worth $130,000 to open a new business, RR
Consulting. Which of the following general journal entries will RR Consulting make to record this
transaction?
A)
Debit Assets $200,000; credit Redden, Capital, $200,000.
B)
Debit Redden, Capital, $200,000; credit Cash $70,000, credit Land, $130,000.
C)
Debit Cash $70,000; debit Land $130,000; credit Redden, Capital, $200,000.
D)
Debit Redden, Capital, $200,000; credit Assets, $200,000.
E)
Debit Cash and Land, $200,000; credit Redden, Capital, $200,000.
107)
Paul’s Landscaping purchased $500 of office supplies on credit. The company’s policy is to initially
record prepaid and unearned items in balance sheet accounts. Which of the following general
journal entries will Paul’s Landscaping make to record this transaction?
A)
Debit Accounts payable, $500; credit Office supplies, $500.
B)
Debit Cash, $500; credit Office supplies, $500.
C)
Debit Office supplies, $500; credit Accounts payable, $500.
D)
Debit Office supplies, $500; credit Cash, $500.
E)
Debit Office supplies expense, $500; credit Cash, $500.
108)
Paul’s Landscaping paid $500 on account for supplies purchased in the prior month. Which of the
following general journal entries will Paul’s Landscaping make to record this transaction?
A)
Debit Accounts payable, $500; credit Cash, $500.
B)
Debit Office supplies expense, $500; credit Cash, $500.
C)
Debit Cash, $500; credit Office supplies, $500.
D)
Debit Office supplies, $500; credit Accounts payable, $500.
E)
Debit Office supplies, $500; credit Cash, $500.
109)
A law firm billed a client $1,800 for work performed in the current month. Which of the following
general journal entries will the firm make to record this transaction?
A)
Debit Cash, $1,800; credit Accounts Receivable, $1,800.
B)
Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800.
C)
Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800.
D)
Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800.
E)
Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800.
110)
A law firm collected $1,800 on account for work performed in the previous month. Which of the
following general journal entries will the firm make to record this transaction?
A)
Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800.
B)
Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800.
C)
Debit Cash, $1,800; credit Accounts Receivable, $1,800.
D)
Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800.
E)
Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800.
45
111)
A law firm collected $1,800 for work to be performed in the following month. Which of the
following general journal entries will the firm make to record this transaction?
A)
Debit Cash, $1,800; credit Accounts Receivable, $1,800.
B)
Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800.
C)
Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800.
D)
Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800.
E)
Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800.
112)
Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the
following general journal entries will Wiley Consulting make to record this transaction? Assume
the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.
A)
Supplies Expense
7,000
Accounts Payable
7,000
B)
Supplies
7,000
Cash
7,000
C)
Supplies
7,000
Accounts Payable
7,000
D)
Accounts Payable
7,000
Supplies
7,000
46
E)
Cash
7,000
Supplies
7,000
113)
J. Brown Consulting immediately paid $500 cash for utilities for the current month. Given the
choices below, determine the general journal entry that J. Brown Consulting will make to record
this transaction.
A)
Prepaid Utilities
500
Accounts Payable
500
B)
Utilities Expense
500
Cash
500
C)
Cash
500
Accounts Payable
500
D)
Utilities Expense
500
Accounts Payable
500
47
E)
Cash
500
Utilities Expense
500
114)
J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December
1. Given the choices below, determine the general journal entry that J. Brown Consulting will
make to record the cash payment. Assume the company’s policy is to initially record prepaid and
unearned items in balance sheet accounts
A)
Cash
2,500
Insurance Expense
2,500
B)
Prepaid Insurance
2,500
Cash
2,500
C)
Cash
2,500
Prepaid Insurance
2,500
D)
Insurance Expense
2,500
Cash
2,500
48
E)
Insurance Expense
2,500
Prepaid Insurance
2,500
115)
ABC Catering received $800 cash from a customer for catering services to be provided next
month. Given the choices below, determine the general journal entry that ABC Catering will make
to record the cash receipt. Assume the company’s policy is to initially record prepaid and unearned
items in balance sheet accounts.
A)
Cash
800
Unearned Catering Revenue
800
B)
Accounts Receivable
800
Catering Revenue
800
C)
Cash
800
Accounts Receivable
800
D)
Unearned Catering Revenue
800
Catering Revenue
800
49
E)
Cash
800
Catering Revenue
800
116)
Grills R Us Catering provided $1,000 of catering services and billed its client for the amount owed.
Given the choices below, determine the general journal entry that Grills R Us Catering will make
to record this transaction.
A)
Cash
1,000
Catering Revenue
1,000
B)
Unearned Catering Revenue
1,000
Catering Revenue
1,000
C)
Catering Revenue
1,000
Accounts Receivable
1,000
D)
Accounts Receivable
1,000
Catering Revenue
1,000
50
E)
Accounts Receivable
1,000
Unearned Catering Revenue
1,000
117)
Trimble Graphic Design receives $1,500 from a client billed in a previous month for services
provided. Which of the following general journal entries will Trimble Graphic Design make to
record this transaction?
A)
Accounts Receivable
1,500
Unearned Design Revenue
1,500
B)
Cash
1,500
Unearned Design Revenue
1,500
C)
Cash
1,500
Design Revenue
1,500
D)
Accounts Receivable
1,500
Cash
1,500
51
E)
Cash
1,500
Accounts Receivable
1,500
118)
J. Smith withdrew $100 from Jay’s Limo Services for personal use. Which of the following general
journal entries will Jay’s Limo Services make to record this transaction?
A)
J. Smith, Capital
100
J. Smith, Withdrawals
100
B)
J. Smith, Withdrawals
100
J. Smith, Capital
100
C)
Cash
100
J. Smith, Withdrawals
100
D)
Cash
100
J. Smith, Capital
100
52
E)
J. Smith, Withdrawals
100
Cash
100
119)
Jay’s Limo Services paid $300 cash to employees for work performed in the current period. Which
of the following general journal entries will Jay’s Limo Services make to record this transaction?
A)
Salaries Expense
300
Accounts Payable
300
B)
Salaries Expense
300
Cash
300
C)
Salaries Expense
300
J. Smith, Withdrawals
300
D)
Cash
300
Salaries Expense
300
53
E)
Salaries Payable
300
Salaries Expense
300
120)
Able Graphics received a $400 utility bill for the current month’s electricity. It is not due until the
end of the next month which is when they intend to pay it. Which of the following general journal
entries will Able Graphics make to record this transaction?
A)
No journal entry is required
B)
Utilities Expense
400
Cash
400
C)
Utilities Expense
400
Accounts Payable
400
D)
Accounts Payable
400
Utilities Expense
400
54
E)
Cash
400
Utilities Expense
400
121)
HH Consulting & Design provided $800 of consulting work and $100 of design work to the same
client. It billed the client for the total amount and is expecting to collect from the customer next
month. Which of the following general journal entries will HH Consulting & Design make to
record this transaction?
A)
Cash
900
Consulting Revenue
800
Design Revenue
100
B)
Consulting Revenue
800
Design Revenue
100
Cash
900
C)
Accounts Payable
800
Design Revenue
100
Consulting Revenue
800
55
D)
Accounts Receivable
900
Consulting Revenue
800
Design Revenue
100
E)
Design Revenue
100
Consulting Revenue
800
Accounts Receivable
900
122)
Gi Gi’s Dance Studio provided $150 of dance instruction and rented out its dance studio to the
same client for another $100. The client paid immediately. Identify the general journal entry below
that Gi Gi’s will make to record the transaction.
A)
Accounts Receivable
250
Rental Revenue
100
Instruction Revenue
150
B)
Unearned Revenue
250
Rental Revenue
100
Instruction Revenue
150
56
C)
Rental Revenue
100
Instruction Revenue
150
Cash
250
D)
Accounts Payable
250
Rental Revenue
100
Instruction Revenue
150
E)
Cash
250
Rental Revenue
100
Instruction Revenue
150
123)
Geraldine Parker, the owner of Gi Gi’s Dance Studio, started the business by investing $10,000
cash and donating a building worth $20,000. Identify the general journal entry below that Gi Gi’s
will make to record the transaction.
A)
Cash
10,000
G. Parker, Capital
30,000
57
B)
Cash & Building
30,000
G. Parker, Capital
30,000
C)
Owner’s Investments
30,000
G. Parker, Capital
30,000
D)
Cash
10,000
Building
20,000
G. Parker, Capital
30,000
E)
G. Parker, Capital
30,000
Cash
10,000
Building
20,000
124)
A company provided $12,000 of consulting services on account. The customer promises payment
in 30 days. Identify the journal entry below that properly records this transaction.
A)
Accounts payable
12,000
Consulting services revenue
12,000
58
B)
Cash
12,000
Consulting services revenue
12,000
C)
Accounts receivable
12,000
Cash
12,000
D)
Accounts Receivable
12,000
Consulting services revenue
12,000
E)
Consulting services revenue
12,000
Cash
12,000
125)
A company provided $12,000 of consulting services, and was immediately paid in cash by the
customer.Identify the journal entry below that properly records this transaction.
A)
Accounts receivable
12,000
Consulting services revenue
12,000
59
B)
Accounts receivable
12,000
Cash
12,000
C)
Consulting services revenue
12,000
Cash
12,000
D)
Cash
12,000
Consulting services revenue
12,000
E)
Accounts payable
12,000
Consulting services revenue
12,000
126)
Mary Martin, the owner of Martin Consulting, withdrew $2,000 cash from the company for
personal use. Identify the general journal entry below that Martin Consulting will make to record
the transaction.
A)
M. Martin, Capital
2,000
Cash
2,000
60
B)
M. Martin, Withdrawals
2,000
M. Martin, Capital
2,000
C)
Cash
2,000
M. Martin, Withdrawals
2,000
D)
Cash
2,000
M. Martin, Capital
2,000
E)
M. Martin, Withdrawals
2,000
Cash
2,000
127)
Mary Martin, the owner of Martin Consulting, started the business by investing $40,000 cash.
Identify the general journal entry below that Martin Consulting will make to record the transaction.
A)
Investments
40,000
M. Martin, Capital
40,000