Question 1

A business purchased land for $250,000 cash.Record the transaction in the journal.

Accepted Answer

The answer of A business purchased land for $250,000 cash.Record...

Question 2

For each transaction,identify which account is debited and which account is credited.Use proper account titles.
 $$\begin{array} { | l | l | l | } 
\hline  { \text { Transaction } } & \text { Debit } & \text { Credit } \
\hline \text { Received a bill for utilities to be } & & \
\text { paid next month } & & \
\hline \text { Performed services on account } & & \
\hline \text { Paid cash for a 12-month } & & \
\text { insurance policy, coverage } & & \
\text { tarting next month } & & \
\hline \text { Paid rent for the current month } & & \
\hline \text { Borrowed cash from the bank for } & & \
\text { business use; a note was signed } & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each transaction,identify which account is debited...

Question 3

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

Accepted Answer

In a computerized environment, the posting process is completed automatically when the user enters the journal entry. This eliminates the need for manual posting and reduces the chances of errors.

Question 4

A business renders services to its customer for $50,000 on account.Record the transaction in the journal.

Accepted Answer

The answer of A business renders services to its customer...

Question 5

Which of the following journal entries would be recorded if Christy Jones,Inc.issued stock and received $3,000?

Accepted Answer

When stock is issued, cash is debited (increased) and common stock is credited (increased) for the amount received.

Question 6

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

Accepted Answer

The correct journal entry for receiving cash for services rendered is to debit Cash and credit Service Revenue.

Question 7

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar, 1 The business received $\$ 9,000$ cash and issued common stock to stockholders.
Mar. 2 Paid the first month's rent of $\$ 900$.
Mar. 3 Purchased equipment by paying \$3,000 cash and expcuting a note payable for $7,000.
Mar. 4 Purchased office supplies for $\$ 730 \mathrm { cash }$.
Mar. 5 Eilled a client for \$10,000 of design services completed.
Mar. 6 Received $\$ 7,900$ on account for the services previously recorded. What is the balance in Cash?

Accepted Answer

The answer of The following transactions for the month of...

Question 8

Sharon Foods,Inc.reported the following transactions for September 2017. 
a)The business received $22,000 cash and issued common stock.It was credited to Common Stock.
b)The business purchased office equipment for $9,000 for which $2,500 cash was paid and the balance was put on a note payable.
c)Paid insurance expense of $1,500 cash.
d)Paid the September utility bill for $900 cash.
e)Paid $1,500 cash for September rent.
f)The business had sales of $11,000 in September.Of these sales,60% were cash sales,and the balance was credit sales.
g)The business paid $8,000 cash for office furniture.
What are the total liabilities at the end of September,2017?

Accepted Answer

11ea86d6_8340_3dfc_92b6_dfa1e94c52a9_TB2804_00

Question 9

After posting the journal entries from the journal to the ledger,the accounting equation should be in balance.

Accepted Answer

Posting the journal entries to the ledger ensures that all transactions are accounted for and recorded accurately, which helps to maintain the balance in the accounting equation. Therefore, after posting the journal entries to the ledger, the accounting equation should be in balance.

Question 10

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?

Accepted Answer

The correct entry is to debit Accounts Payable to decrease the liability and credit Cash to reflect the payment made.

Question 11

A business has the following transactions: • The business receives $25,000 cash and issues common stock to stockholders.
• The business purchases $800 of office supplies on account.
• The business purchases $4,000 of furniture on account.
• The business renders services to various clients totaling $17,000 on account.
• The business pays $2,000 for salaries expense and $5,000 for rent expense.
• The business pays $800 to a supplier for the office supplies purchased earlier.
• The business collects $3,000 from one of its clients for services rendered earlier in the month.
At the end of the month,all journal entries are posted to the ledger.Accounts Receivable will appear as which of the following?

Accepted Answer

The answer of A business has the following transactions: •...

Question 12

A business purchases $3,500 of office supplies for cash.Which of the following sets of ledger accounts reflects the posting of this transaction?

Accepted Answer

The answer of A business purchases $3,500 of office supplies...

Question 13

A business has the following transactions: • The business received $20,000 cash and issued common stock to stockholders.
• The business purchases $500 of office supplies on account.
• The business purchases $4,000 of furniture on account.
• The business renders services to various clients totaling $11,000 on account.
• The business pays out $3,000 for salaries expense and $5,000 for rent expense.
• The business pays $600 to supplier for the office supplies purchased earlier.
• The business collects $1,000 from one of its clients for services rendered earlier in the month.
At the end of the month,all journal entries are posted to the ledger.Accounts Payable will appear as which of the following?

Accepted Answer

The answer of A business has the following transactions: •...

Question 14

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar, 1 The business received $\$ 7,000$ cash and issued common stock to stockholders.
Mar. 2 Paid the first month's rent of $\$ 500$.
Mar. 3 Purchased equipment by paying $2,000 cash and expcuting a note payable for $6,000.
Mar. 4 Purchased office supplies for $\$ 700$ cash.
Mar. 5 Eilled a client for $12,000 of design services completed.
Mar. 6 Received $\$ 9,000$ on account for the services previously recorded. What is the balance in Accounts Receivable?

Accepted Answer

The initial accounts receivable was $12,000 from the client billed on March 5. On March 6, $9,000 was received on account, reducing the accounts receivable balance to $3,000.

Question 15

For each transaction,identify which account is debited and which account is credited.Use proper account titles.
 $$\begin{array} { | l | l | l | } 
\hline { \text { Transaction } } & \text { Debit } & \text { Credit } \
\hline \text { Received cash on account from a } & & \
\text { customer } & & \
\hline \text { Paid cash dividends to } & & \
\text { stockholders } & & \
\hline \text { Purchased office supplies on } & & \
\text { account } & & \
\hline \text { Received cash from customers for } & & \
\text { pervices to be performed next } & & \
\text { month } & & \
\hline \text { Paid employee's salary } & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each transaction,identify which account is debited...

Question 16

Which of the following journal entries would be recorded if a business purchased $800 of office supplies on account?

Accepted Answer

When office supplies are purchased on account, the Office Supplies account is debited to increase assets, and Accounts Payable is credited to increase liabilities.

Question 17

When using a four-column account,the posting reference column allows the user of the financial data to trace the amounts in the journal back to the ledger.

Accepted Answer

When using a four-column account, the posting reference column allows the user of the financial data to trace the amounts in the ledger back to the journal.

Question 18

The following transactions for March have been journalized and posted to the proper accounts. Mar, 1 The business received $\$8, 000$ cash and issued common stock to stockholders.
Mar. 2 Paid the first month's rent of $\$ 600$.
Mar. 3 Purchased equipment by paying $1,000 cash and expcuting a note payable for $4,000.
Mar. 4 Purchased office supplies for $\$ 650 \mathrm { cash }$.
Mar. 5 Eilled a client for $13,000 of design services completed.
Mar. 6 Received $\$ 7,000$ on account for the services previously recorded. What is the ending balance in the Service Revenue account?

Accepted Answer

The Service Revenue account is credited when services are billed or completed. On March 5, $13,000 was billed for design services, so the ending balance in the Service Revenue account is $13,000.

Question 19

A business paid salaries of $6,000 in cash.Record the transaction in the journal.

Accepted Answer

The answer of A business paid salaries of $6,000 in...

Question 20

A posting reference column is used ________.

Accepted Answer

Posting reference columns are used when the information is transferred from the journal to the ledger. They provide a means of identifying which transactions have been posted, and to cross-reference between the journal and the ledger.

Quiz 2: Recording Business Transactions