FA 2 - Recording Transactions

Which of the following is an expense account? Select all that apply.

Cost of Goods Sold, Rent Expense, Wages Expense

Which of the following accounts is decreased by a debit? Select all that apply.

Sales Revenue is correct Sales Revenue is a revenue account as part of owners' equity and therefore increases with a credit and decreases with a debit. Deferred Revenue is correct Deferred Revenue is a liability account and therefore increases with a credit and decreases with a debit.

Select the accounts that will be impacted by the transaction described below and drag them to the correct section of the accounting equation. Once the T-account appears, choose the date from the drop-down menu, and enter the appropriate amount as debit or credit. RECORD THIS TRANSACTION: Cakery Bakery receives $1,000 from a customer on August 5, 2016 for a wedding cake to be delivered on September 19, 2016. What would Cakery Bakery record on their books when they receive this payment?

The correct answer is to debit Cash (an asset) for $1,000 as the company now has the cash and credit Deferred Revenue (a liability) for $1,000 as the company now has an obligation to provide services in the future.

Which of the following is TRUE regarding journal entries:

The total amount debited must equal the total amount credited

Record this transaction

Wise Guys Consulting issues an invoice for $9,000 to one of their clients for services provided. The terms of the invoice call for payment 30 days after the invoice date. What would be the impact at the date the services are completed and invoiced?