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Which of the following journal entries would be recorded if a business renders service

Which of the following journal entries would be recorded if a business renders service and receives cash of $400 from the customer?

A)

Service revenue

400

 

     Cash

 

400

B)

Service revenue

400

 

     Accounts payable

 

400

C)

Cash

400

 

     Service revenue

 

400

D)

Service revenue

400

 

     Accounts receivable

 

400

 

35) Which of the following journal entries would be recorded if a business makes a cash payment to a supplier  of $600 "on account" (the business had purchased supplies on account in the previous month)?

A)

Cash

600

 

     Accounts payable

 

600

B)

Accounts payable

600

 

     Cash

 

600

C)

Cash

600

 

     Supplies

 

600

D)

Accounts payable

600

 

     Supplies

 

600

 

 

36) Which of the following journal entries would be recorded if Jane Brown formed a corporation, and then deposited cash of $6,000 into the corporation's bank account?

A)

Cash

6,000

 

     Common stock

 

6,000

B)

Accounts payable

6,000

 

     Cash

 

6,000

C)

Common stock

6,000

 

      Cash

 

6,000

D)

Common stock

6,000

 

     Accounts payable

 

6,000

 

37) Which of the following journal entries would be recorded if a business purchased equipment for $3,000 cash?

A)

Cash

3,000

 

     Equipment

 

3,000

B)

Equipment

3,000

 

     Cash

 

3,000

C)

Cash

3,000

 

     Accounts payable

 

3,000

D)

Equipment

3,000

 

     Accounts payable

 

3,000

 

 

38) Which of the following journal entries would be recorded if a business collects $1,000 cash on account  from a customer for services performed at an earlier date?

A)

Cash

1,000

 

     Service revenue

 

1,000

B)

Accounts receivable

1,000

 

     Service revenue

 

1,000

C)

Cash

1,000

 

     Accounts receivable

 

1,000

D)

Service revenue

1,000

 

     Accounts receivable

 

1,000

 

39) Which of the following journal entries would be recorded if a business purchases equipment for $2,500 cash and supplies for $450 cash?

A)

Equipment

2,950

 

     Cash

 

2,500

     Supplies

 

450

B)

Cash

2,500

 

Equipment

450

 

     Accounts receivable

 

2,950

C)

Cash

2,950

 

     Equipment

 

2,500

     Supplies

 

450

D)

Equipment

2,500

 

Supplies

450

 

     Cash

 

2,950

 

40) A business makes a payment of $1,200 on a note payable, consisting of a $200 interest payment and a $1,000 principal payment. Which of the following journal entries would be recorded?

A)

Notes payable

1,000

 

Interest expense

200

 

     Cash

 

1,200

B)

Cash

1,200

 

     Notes payable

 

1,000

     Interest expense

 

200

C)

Notes payable

1,200

 

     Cash

 

1,000

     Interest expense

 

200

D)

Cash

1,000

 

        Notes payable

 

1,200

        Interest expense

 

200

 

41) A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000. Which of the following journal entries would be recorded?

A)

Equipment

20,000

 

     Notes payable

 

12,000

     Cash

 

8,000

B)

Cash

8,000

 

Notes payable

12,000

 

     Equipment

 

20,000

C)

Cash

8,000

 

Notes payable

4,000

 

     Equipment

 

12,000

D)

Equipment

8,000

 

Notes payable

4,000

 

     Cash

 

12,000

 

 

42) The following transactions have been journalized and posted to the proper accounts.

 

1.  Mark Call invested $7,000 cash in his new design services corporation in exchange for stock.

2.  The corporation paid the first month's rent of $700.

3.  The corporation purchased equipment by paying $2,000 cash and executing a note payable for $4,500.

4.  The corporation purchased supplies for $850 cash.

5.  The corporation billed a client for $4,000 of design services completed.

6.  The corporation received $3,000 of the account for the completed services.

 

What is the balance in Cash?

A) $7,850

B) $6,450

C) $8,450

D) $8,150

43) Which of the following journal entries would be recorded if a business purchased $200 of supplies by paying cash?

A)

Cash

200

 

     Supplies

 

200

B)

Accounts payable

200

 

     Supplies

 

200

C)

Supplies

200

 

     Cash

 

200

D)

Supplies

200

 

      Accounts payable

 

200

Feb 01 2020 View more View Less

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