Accounting ch 2 quiz

Sharp Services 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. What general journal entry will be used to record the billing of the customer?

Accounts Receivable 900 debit; Consulting revenue $800 credit; Design Revenue $100 credit

A company provided $12,000 of consulting services on account. The customer promises payment in 30 days. What journal entry properly records this transaction?

Accounts receivable (12,000 debit) Consulting services revenue (12,000 credit)

Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $40,000 cash in exchange for common stock. What general journal entry will Innovation Consulting make to record the transaction?

Cash ( 40,000 debit) Common Stock (40000 credit)

Geoff Parker, the sole stockholder of Parker Tax Services started the business by investing $10,000 cash and a building worth $20,000. What general journal entry will Parker Tax services make to record the transaction?

Cash (10,000 debit) Building (20,000 debit) Common stock (30,000 credit)

Adriana Graphic Design receives $1500 from a client billed in a previous month for services provided. What general journal entry will Adriana Graphic Design make to record this transaction?

Cash (1500 debit) Account's Receivable (1500 credit)

Ted catering received $800 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted 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.

Cash (800 debit) Unearned catering revenue (800 credit)

Green Lawn Co. provides landscaping services to clients. On May 1, a customer paid Green Lawn Co. $60,000 for 6 months of services in advance. Green Lawn's journal entry to record this transaction will include a:

Credit to unearned revenue for $60,000

If Tyrol Willow, the sole stockholder of Willow Hardware withdraws cash of the business to purchase a family car, the business should record this use of cash with an entry to:

Debit Dividends; Credit Cash

A credit entry

Decreases asset and expense accounts and increases liability, common stock and revenue accounts

Jay Limo's services paid cash dividends of $100. What general journal entry will Jay's Limo services make to record this transaction?

Dividends (100 debit) Cash (100 credit)

What account is used by businesses to record the transfer if assets from a business to its stockholders?

Dividends Account

Alejandro Consulting paid $2500 cash for a 5-month insurance policy that begins on March 1. Determine the general journal entry to record the cash payment.

Prepaid Insurance 2500 debit; Cash 2500 credit

Jay's Limo services paid $300 to employees for work performed in the current period. What general journal entry will Jay's Limo Services make to record this transaction?

Salaries Expense (300 debit) Cash (300 credit)

Jose Consulting paid $500 cash for utilities for utilities for the current month. What general journal entry will Jose Consulting make to record this transaction?

Utilities Expense (500 debit) Cash (500 credit)

During the month of March, Harley's Computer Services made purchases on account totaling $43,500. Also during the month of March, Harley was paid $8,000 by a customer for services to be provided in the future and paid $36900 in cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?

$83,900 Beginning accounts payable balance + Purchases on Account - Payments on Accounts= Ending Accounts Payable Balance 77300+43500-36900=83900

A business uses a credit to record:

a decrease in an asset account

account that is classified as an asset in a company's chart of accounts

accounts receivable

A debit is used to record

an increase in the dividends account

Find the total assets of: Cash $20,000 Accounts Receivable $2,000 Salaries Expense $500 Accounts Payable $4,000 Lodging Revenue $7,000 Utilities Expense $500 Prepaid Insurance $1400 Supplies $1500 Common Stock $14900

assets=liabilities+common stock-dividends+revenues-expenses $24,900

Willow Rentals purchased office supplies on credit. The general journal entry made by Willow Rentals will include:

credit to accounts payable

A debit

is the left-hand side of a t-account

$500 Office supplies purchased on credit?

office supplies $500 debit; accounts payable $500 credit

Net income=

revenues-expenses

Example of an asset account

supplies

account classified as a liability in a company's chart of accounts

unearned revenue

Russell Co. 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. What journal entry will be made to record receipt of the bill?

utilities expense (400 debit) accounts payable (400 credit)