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Home / Questions / When a company pays utilities of $1800 in cash the transaction is recorded as

When a company pays utilities of $1800 in cash the transaction is recorded as

When a company pays utilities of $1,800 in cash, the transaction is recorded as:

a. Debit Utilities Expense $1,800, credit Utilities Payable $1,800.

b. Debit Utilities Payable $1,800, credit Cash $1,800.

c. Debit Cash $1,800, credit Utilities Expense $1,800.

d. Debit Utilities Expense $1,800, credit Cash $1,800.

 

 

116. Assume that cash is paid for rent to cover the next year. The appropriate debit and credit are:

a. Debit Rent Expense, credit Cash.

b. Debit Prepaid Rent, credit Rent Expense.

c. Debit Prepaid Rent, credit Cash.

d. Debit Cash, credit Prepaid Rent.

 

 

117. Summer Leasing received $12,000 for 24 months rent in advance. How should Summer record this transaction?

a. Debit Prepaid Rent; credit Rent Expense.

b. Debit Cash; credit Unearned Revenue.

c. Debit Cash; credit Service Revenue.

d. Debit Rent Expense; credit Cash.

 

 

118. Styleson Inc. performed cleaning services for its customers for cash. These transactions would be recorded as:

a. Debit Service Revenue, credit Cash.

b. Debit Cash, credit Service Revenue.

c. Debit Cash, credit Accounts Receivable.

d. Debit Accounts Receivable, credit Service Revenue.

 

 

119. Assume that $18,000 cash is paid for insurance to cover the next year. The appropriate

debit and credit are:

a. Debit Insurance Expense $18,000, credit Prepaid Insurance $18,000.

b. Debit Prepaid Insurance $18,000, credit Insurance Expense $18,000.

c. Debit Prepaid Insurance $18,000, credit Cash $18,000.

d. Debit Cash $18,000, credit Prepaid Insurance $18,000.

 

 

120. Schooner Inc. purchased equipment by signing a note payable. This transaction would be recorded as:

a. Debit Equipment, credit Cash.

b. Debit Cash, credit Notes Payable.

c. Debit Notes Payable, credit Equipment.

d. Debit Equipment, credit Notes Payable.

 

 

121. When a company pays $2,500 dividends to its stockholders, the transaction should be recorded as:

a. Debit Cash; credit Dividends.

b. Debit Retained Earnings; credit Dividends.

c. Debit Dividends; credit Cash.

d. Debit Dividends; credit Accounts Payable.

 

 

122. Daniel Dino Restaurant owes employee salaries of $15,000. This would be recorded as:

a. Debit Salaries Expense, credit Cash.

b. Debit Salaries Payable, credit Cash.

c. Debit Salaries Expense, credit Salaries Payable.

d. Debit Salaries Payable, credit Salaries Expense.

 

 

123. Jerome purchased a building for his business by signing a note to be repaid over the next ten years. Which of the following correctly describes how to record this transaction?

a. Debit assets, credit liabilities.

b. Debit assets, credit stockholders’ equity.

c. Debit liabilities, credit assets.

e. Debit expenses, credit liabilities.

 

 

124. Incurring an expense for advertising on account would be recorded by:

a. Debiting liabilities.

b. Crediting assets.

c. Debiting an expense.

d. Debiting assets.

Jan 27 2020 View more View Less

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