Century 21 Accounting Multicolumn Journal
11th Edition
ISBN: 9781337679503
Author: Gilbertson
Publisher: Cengage
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Students have asked these similar questions
Sales made to Ahmed on credit should be debited to?
Select one:
a. Cash A/C
b. Account Receivable A/C
c. Sales A/C
d. Account Payable A/C
hen the owner withdraws money from the business for personal use -Which of the following has correct effect on accounting equation?
Select one:
a. Expense increase and Cash decrease
b. Cash increase and Capital increase
c. Cash decrease and Capital decrease
d. Income increase and Cash decrease
Use the following to answer questions 10 – 13
Indicate which of the following accounts should be debited
and which should be credited. An example has been
provided (ex). Purchase Office Supplies in exchange for
cash Debit : N (Supplies) Credit: C (Cash)...see below.
Only include the letter of the account not the account
name.
A. Accounts payable E. Dividends
I. Rent expense
M. Service revenue
B. Accounts receivable F. Equipment
J. Retained earnings N. Supplies
C. Cash
G. Notes payable K. Salaries expense O. Utilities expense
D. Common stock
H. Prepaid rent
L. Salaries payable
Account Debited Account Credited
ex Purchase Office Supplies in exchange for cash
10. Received the utility bill, will pay next week.
11. Paid a deposit for rent for the next three months.
12. Recorded salaries for the week, will pay next week.
13. Provided services to customers on account.
12. An account to be debited should
be firstly determined in recording
transaction in the general journal.
Which of the following should come
first?*
O A. Cash, when the balance decreases
B. Accounts payable, when the balance
increases
C. Accounts receivable, when the balance
decreases
D. Rent expense, when the balance
increases
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- Which of the following pairs of accounts are impacted the same with debits and credits? A. Cash and Unearned Service Revenue B. Electricity Expense and Office Supplies C. Accounts Receivable and Accounts Payable D. Buildings and Common Stockarrow_forwardSUBJECT: Financial Accounting and Reporting Instruction: Choose the Debit and Credit Accounts of the following transactions. TRANSACTION: Withdrew cash for personal use1. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 2. Credit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation TRANSACTION: Received cash for services not yet rendered3. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 4. Credit *a. Cash In Bankb.…arrow_forwardA credit is used to increase which of the following accounts? a. Dividends. b. Insurance Expense. c. Cash. d. Service Revenue.arrow_forward
- Use the following to answer questions 6 – 8 Analyze each transaction. Under each category in the accounting equation, indicate whether the transaction: A. increases, B. decreases, or C. has no effect. The item (a) is provided as an example. (a) Purchased a truck by paying cash. (Assets Increase, Assets decrease by the same amount (NE), Liabilities and Stockholders' Equity No Effect). 6. Borrowed from the bank. 7. Purchased office supplies on account. 8. Paid employees for work completed this month. Asset Liability Stockholders' Equity (а) 6. 7. 8.arrow_forwardCompound entries A. would include an entry to record the purchase of n computer for cash. B. include al least two debits or two credits. C. require thut all credits be listed before the debits for entries allecting the statement of financial position. D. should be broken into their component parts and recorded as simpic entries.arrow_forwardI. Multiple Choice Directions: Choose the letter corresponding to the correct answer for each of the questions provided below. 1. Accounts receivable or the amount to be received when a customer orders on account is an example of what account? b. Liability d. All of the above a. Asset c. Equity 2. Expenses incurred on paying utilities belong to what type of account? b. Liability d. All of the above a. Asset c. Equity 3. If Company A borrows money from company B, the transaction results to a. İncrease in asset of A and increase in asset in B b. Increase in asset of A and decrease in equity of B c. Increase in asset of A and no effect on assets of B d. Both B and C 4. Equity means assets minus liabilities. Other terms that can be used synonymously Q2with equity are the following except a. Capital b. Net assets d. Profit c. Net worth 5. Sources of legal obligation are the following except a. The law c. Debts • Source: Ferrer R.C. et.al. (2017). Fundamentals of Accountancy, Business and…arrow_forward
- Directions: Choose the letter corresponding to the correct answer for each of the questionsprovided below.1. Accounts receivable or the amount to be received when a customer orders on accountis an example of what account?a. Asset c. Equityb. Liability d. All of the above2. Expenses incurred on paying utilities belong to what type of account?a. Asset c. Equityb. Liability d. All of the above3. If Company A borrows money from company B, the transaction results toa. Increase in asset of A and increase in asset in Bb. Increase in asset of A and decrease in equity of Bc. Increase in asset of A and no effect on assets of Bd. Both B and C4. Equity means assets minus liabilities. Other terms that can be used synonymously withequity are the following except :a. Capital c. Net worthb. Net assets d. Profit5. Sources of legal obligation are the following excepta. The law c. Debtsb. Contracts d. Other operation by lawarrow_forwardRequired information [The following information applies to the questions displayed below) The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $20,000 of common stock for cash. 2. Recognized $60,000 of service revenue earned on account. 3. Collected $54,000 from accounts receivable. 4. Paid operating expenses of $37,800. 5. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account The following transactions apply to Jova for Year 2 1. Recognized $67,500 of service revenue on account. 2. Collected $62,000 from accounts receivable 3. Determined that $800 of the accounts receivable were uncollectible and wrote them off 4. Collected $300 of an account that had previously been written off. 5. Paid $47,500 cash for operating expenses. 6. Adjusted the accounts to recognize…arrow_forwardIndicate how the following transactions affect the accounting equation: The purchase of supplies on account a. b. The purchase of supplies for cash A withdraw by the owner to pay personal expenses C. Revenues received in cash d. Services performed on account e.arrow_forward
- I. True or false: For the following items, identify if the statements are true or false. Choose the letter that represents the correct combination of answers. 1. Statement I - Double-entry bookkeeping involves a debit and a credit for every transaction. Statement II - The recording of the economic events also involves the classifying of such events a. Both Statements are true b. Only Statement I is true c. Only Statement Il is true d. Both Statements are false 2. Statement I - Small businesses, such as sari-sari stores, have little to no use of accounting Statement II- Accounting reports and/or financial statements need not be presented in a standardized way. a. Both Statements are true b. Only Statement I is true c. Only Statement Il is true d. Both Statements are false 3. Statement I- Accounting involves financial information in the recording process. Statement II - There are three principal activities in the accounting process. a. Both Statements are true b. Only Statement I is true…arrow_forwardSUBJECT: Financial Accounting and Reporting Instruction: Choose the Debit and Credit Accounts of the following transactions. TRANSACTION: Purchased supplies on account1. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 2. Credit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation TRANSACTION: Paid travelling expenses to pay business permit3. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 4. Credit *a. Cash In Bankb.…arrow_forward1) Analyze the following transactions. Indicate which accounts are affected and whether they will increase or decrease. Transaction (a) is completed as an example. a. b. Payment of a utility bill. Purchase of inventory for cash. d. Payment of an accounts payable. e. Performing a service on account. Collecting cash from a customer as payment on his account. Transaction Owner investment of cash into the business. С. f. Accounts Increase Decrease a. Cash X Common shares b. C. d. e. + appropriate dollar amount. Page 1 7 2) For each of the following ind 21°C Sunny O Mont - sdm-osri-kwnarrow_forward
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