1. In the first month of operations, the total of the debit entries to the cash
ID: 2431407 • Letter: 1
Question
1. In the first month of operations, the total of the debit entries to the cash account amounted to $1900 and the total of the credit entries to the cash account amounted to $800. The cash account has a balance of……………….
2. Dawson’s Delivery Service purchased equipment for $3,500. Dawson paid $500 in cash and signed a note for the balance. Dawson debited the Equipment account, credited Cash and
a. debited the Dawson, Capital account for $2,000.
b. credited another asset account for $500.
c. credited a liability account for $3,000.
d. nothing further must be done.
3. Grayton Industries purchased supplies for $1,200. They paid $500 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,200, a credit to a liability account for $700. Which of the following would be the correct way to complete the recording of the transaction?
a. Credit another liability account for $500.
b. Credit the Grayton, Capital account for $500.
c. Debit the Grayton, Capital account for $500.
d. Credit an asset account for $700.
4. On January 14, Franco Industries purchased supplies of $500 on account. The entry to record the purchase will include
a. a debit to Supplies and a credit to Accounts Payable.
b. a debit to Supplies Expense and a credit to Accounts Receivable.
c. a debit to Supplies and a credit to Cash.
d. a debit to Accounts Receivable and a credit to Supplies.
Explanation / Answer
1) Cash account balance is 1900-800 = $1100
2) Journal entry :
So answer is c) credited a liability account for $3,000.
3) Journal entry :
so answer is a) Credit another liability account for $500.
4) Journal entry :
So answer is a) a debit to Supplies and a credit to Accounts Payable.
Date account and explanation debit credit Equipment 3500 Cash 500 Notes payable 3000Related Questions
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