Objective Type questions in relation to passing of Journal Entries.
1. A credit may signify a _____
a. decrease in assets
b. decrease in liabilities
c. decrease in capital
d. decrease in revenue
2. Which of the following applications of the rules of debit and credit is true?
a. decrease Prepaid Insurance with a credit and the normal balance is a credit
b. increase Accounts Payable with a credit and the normal balance is a debit
c. increase Supplies Expense with a debit and the normal balance is a debit
d. decrease Cash with a debit and the normal balance is a credit
3. Which of the following entries records the receipt of cash from patients on account?
a. Accounts Payable, debit; Fees Earned, credit
b. Accounts Receivable, debit; Fees Earned, credit
c. Accounts Receivable, debit; Cash, credit
d. Cash, debit; Accounts Receivable, credit
4. A cash payment is recorded on the cash account as a _____
a. either a debit or a credit
b. credit
c. debit
d. either a debit or a credit
5. Prepare a journal entry for the purchase of office equipment on November 23 for $13,750,
paying $5,000 cash and the reminder on account
what is the debit amount for the transaction?
a. $5,000
b. $8,750
c. $13,750
d. None of the above
6. Prepare a journal entry on february 2 for fees earned on account, $6,300
what is the journal entry?
a. Debit Cash $6,300; Credit Fees Earned $6,300
b. Debit Accounts Receivable $6,300; Credit Fees Earned $6,300
c. Fees Earned $6,300; Credit Cash $6,300
d. Debit Fees Earned $6,300; Credit Accounts Receivable $6,300
7.
a. Kara transferred cash from a personal bank acc to an acc to be used for the business
b. paid rent on office and equipment for the month $2,500
c. Purchased supplies on acc $850
d. paid creditor on acc $ 400
e. Earned sales commissions, receiving cash $ 15,750
f. paid auto expenses (incl rental charge)for month $2,400, and misc expenses $ 600
g. paid office salaries $ 3,250
h. Determined that the cost of supplies used was $575
i. withdrew cash for personal use $ 1,000
what is the ending balance of the cash account?
a. $20,600
b. $21,400
c. $15,000
d. $15,750
8. From the same problem above (7). what is the ending balance of unadjusted the trial
balance? (Points: 7)
a. $27,200
b. $28,200
c. $29,200
d. $31,200