Question 1

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)

B)

C)

D)

Accepted Answer

The journal entry to record the payment of a previous accounts payable on office supplies would involve a debit to Accounts Payable and a credit to Cash. Option B shows the correct accounts and amounts being debited and credited. Option A records the payment as an expense, Option C records a purchase on account, and Option D does not record a cash payment for the accounts payable.

Question 2

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

Accepted Answer

When a business borrows cash by signing a note payable, it creates a liability for the business which is recorded as Notes Payable. Therefore, Notes Payable account is credited.

Question 3

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.

Accepted Answer

The answer of A business makes a payment of $1,400...

Question 4

List the five steps of the journalizing and posting process.

Accepted Answer

The answer of List the five steps of the journalizing...

Question 5

Lance Gomez is the owner of a sole proprietorship.Lance withdrew $5,000 cash from the business for personal use.Which of the following accounts is credited?
A)Gomez,Capital
B)Gomez,Withdrawals
C)Cash
D)Accounts Payable

Accepted Answer

The answer of Lance Gomez is the owner of a...

Question 6

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

Accepted Answer

When a business repays the amount borrowed on a note with cash, the liability account Notes Payable is debited to decrease the liability, reflecting the repayment of the borrowed amount.

Question 7

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

Accepted Answer

When a business repays the amount borrowed on a note with cash, the Cash account is credited because cash is going out of the business. The Notes Payable account would also be credited if the note was still outstanding and being paid off. However, since the question states that the amount borrowed is being repaid with cash, it implies that the note is already matured and due, which means the Notes Payable account has already been credited in the past when the note was issued. Accounts Payable is not relevant in this situation as it is used to record amounts owed to suppliers for goods or services purchased on credit. Notes Receivable is also not relevant as it is used to record amounts owed to the business by its customers on a promissory note.

Question 8

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

Accepted Answer

A compound journal entry is characterized by having multiple debits and/or multiple credits. It is used when a transaction involves more than two accounts to be debited or credited.

Question 9

Van Jones is the owner of a sole proprietorship.Van took $5,000 from the business for personal use.Which of the following accounts is debited?
A)Cash
B)Jones,Withdrawals
C)Jones,Dividends
D)Jones,Capital

Accepted Answer

When the owner of a sole proprietorship takes money out of the business for personal use, it is considered a withdrawal. The account that is debited is Jones, Withdrawals.

Question 10

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

B)

C)

D)

Accepted Answer

The journal entry for purchasing office supplies on account would be a debit to Office Supplies and a credit to Accounts Payable. Choice B) includes these accounts and matches the correct transaction.

Question 11

Employees worked and a business paid salaries of $6,000 in cash.Record the transaction in the journal.

Accepted Answer

The answer of Employees worked and a business paid salaries...

Question 12

Which of the following journal entries would be recorded if a business performs services and receives cash of $900 from the customer?
A)

B)

C)

D)

Accepted Answer

The answer of Which of the following journal entries would...

Question 13

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

Accepted Answer

The answer of A business performs services for its customer...

Question 14

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

Accepted Answer

Cash is credited because it is an outgoing payment made in cash. All other options are incorrect - Prepaid Advertising is an asset account, Accounts Receivable is a receivable account, and Advertising Expense is an expense account.

Question 15

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

Accepted Answer

The account debited would be Advertising Expense, which represents the cost of the television ads that appeared during October. Cash would be credited to reflect payment made for the expense incurred. Accounts Payable and Prepaid Advertising would not be affected by this transaction.

Question 16

A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410.Which of the following occurs?
A)Cash is credited for $7,517,Equipment is credited for $26,927,and Notes Payable is debited for $19,410.
B)Cash is credited for $7,517,Equipment is debited for $26,927,and Notes Payable is credited for $19,410.
C)Cash is debited for $7,517,Equipment is debited for $19,410,and Notes Payable is credited for $26,927.
D)Cash is debited for $7,517,Equipment is credited for $19,410,and Notes Payable is debited for $11,893.

Accepted Answer

When a business purchases equipment by paying cash and issuing a note payable, the cash account is credited for the amount of cash paid ($7,517). The equipment account is debited for the total cost of the equipment ($26,927). This includes both the cash payment and the amount financed through the note payable ($19,410 + $7,517). The note payable account is credited for the amount of the note issued ($19,410). Therefore, choice B is correct.

Question 17

List the four parts of a journal entry.

Accepted Answer

The answer of List the four parts of a journal...

Question 18

For each transaction,identify which account is debited and which account is credited.Use proper account titles.

Accepted Answer

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

Question 19

Which of the following journal entries would be recorded if a sole proprietor,Stan Johnson,contributed $3,000 cash to his business?
A)

B)

C)

D)

Accepted Answer

The answer of Which of the following journal entries would...

Question 20

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...

Quiz 2: Recording Business Transactions

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 business borrows cash by signing a note payable.Which of the following accounts is credited?

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

List the five steps of the journalizing and posting process.

Lance Gomez is the owner of a sole proprietorship.Lance withdrew $5,000 cash from the business for personal use.Which of the following accounts is credited?

A business repays the amount borrowed on a note with cash.Which of the following accounts is debited?

A business repays the amount borrowed on a note with cash.Which of the following accounts is credited?

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

Van Jones is the owner of a sole proprietorship.Van took $5,000 from the business for personal use.Which of the following accounts is debited?

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

Employees worked and a business paid salaries of $6,000 in cash.Record the transaction in the journal.

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

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

A business makes a payment in cash for advertising expense.Which of the following accounts is credited?

On October 31,a business pays $1,500 cash for television ads that appeared during October.Which of the following accounts is debited?

A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410.Which of the following occurs?

List the four parts of a journal entry.

For each transaction,identify which account is debited and which account is credited.Use proper account titles.

Which of the following journal entries would be recorded if a sole proprietor,Stan Johnson,contributed $3,000 cash to his business?

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