11) Which of the following entries records the cash payment of an Account Payabl

Question

11) Which of the following entries records the cash payment of an Account Payable?

a. debit Cash; credit Accounts Payable

b.   debit Accounts Receivable; credit Cash

c. debit Cash; credit Expense

d.   debit Accounts Payable; credit Cash

12) Haselhof Company purchases equipment for $2,400 and supplies for $700 from Behrman

Co. for $3,100 cash. The entry for this transaction will include a

a. debit to Equipment $2,400 and a debit to Supplies Expense $700 for Behrman.

b.   credit to Cash for Behrman.

c. credit to Accounts Payable for Haselhof.

d.   debit to Equipment $2,400 and a debit to Supplies $700 for Haselhof.

13) A metal shop’s employees work overtime to finish an order that is sold on March 28. The office sends a statement to the customer in early April and payment is received by mid- April. The overtime wages should be expensed in

a. March.

b.   April.

c. the period when the workers receive their checks.

d.   either in March or April depending on when the pay period ends.

14) Tom See has performed $4,000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Tom make?

a. Debit Cash and credit Unearned Service Revenue

b.   Debit Accounts Receivable and credit Unearned Service Revenue

c. Debit Accounts Receivable and credit Service Revenue

d.   Debit Unearned Service Revenue and credit Service Revenue

Explanation / Answer

11. d.   debit Accounts Payable; credit Cash

Cash being an asset is credited as cash is decreasing.

Accounts payable being a liability is Debited on decrease.

12. d. debit to Equipment $2,400 and a debit to Supplies $700 for Haselhof.

Equiptment and Supplies being an asset is debited on increase.

13. a. March.

Expenses recorded when accrued

14.c. Debit Accounts Receivable and credit Service Revenue

Accounts recievable being an asset shall be debited

Service revenue being an income shall be booked in the year of accrual

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