Accounting 1 4.01

1. The correct journal entry for the transaction, PAID CASH FOR AN OFFICE DESK, is\:

• debit Cash and credit Office Equipment.
• debit Cash and debit Office Equipment.
• debit Computer Supplies and credit Cash.
• debit Office Equipment and credit Cash.

2. The correct journal entry for the transaction PAID CASH FOR POSTAGE (MISCELLANEOUS EXPENSE) is\:

• debit Cash? credit Miscellaneous Expense.
• debit Cash? credit Supplies.
• debit Supplies? credit Cash.
• debit Miscellaneous Expense? credit Cash.

3. The correct journal entry for the transaction PAID CASH FOR RENT is\:

• debit Miscellaneous Expense? credit Cash.
• debit Rent Expense? credit Cash.
• debit Cash? credit Rent Expense.
• debit Cash? credit Utilities Expense.

4. Classic Cars, Inc. paid $500 cash for supplies from Wendy's Supplies. The journal entry for Classic Cars, Inc. to record this transaction is\:

• debit Cash, $500? credit Supplies Expense, $500.
• debit Cash, $500? credit Supplies, $500.
• debit Supplies Expense, $500? credit Cash, $500.
• debit Supplies, $500? credit Cash, $500.

5. The transaction SOLD SERVICES ON ACCOUNT TO BETH PARKER would result in the journal entry\:

• debit Accounts Receivable/Beth Parker and credit Cash.
• debit Accounts Receivable/Beth Parker and credit Sales.
• debit Cash and credit Accounts Receivable/Beth Parker.
• debit Cash and credit Sales.

6. The correct journal entry for the transaction RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY is\:

• debit Accounts Receivable/Burke Supply and credit Cash.
• debit Accounts Receivable/Burke Supply and credit Jane Smith, Capital.
• debit Cash and credit Accounts Receivable/Burke Supply.
• debit Cash and credit Jane Smith, Capital.

7. The Pool Palace paid cash for the telephone bill, $225. The journal entry to record this transaction is\:

• debit Purchases, $225? credit Cash, $225.
• debit Telephone Expense, $225? credit Cash, $225.
• debit Cash, $225? credit Purchases, $225.
• debit Cash, $225? credit Telephone Expense, $225.

8. The correct journal entry for the transaction BOUGHT SUPPLIES ON ACCOUNT FROM JONES SUPPLY COMPANY is\:

• debit Supplies and credit Cash.
• debit Accounts Payable/Jones Supply Company and credit Cash.
• debit Account Payable/Jones Supply Company and credit Supplies.
• debit Supplies and credit Accounts Payable/Jones Supply Company.

9. The correct journal entry for the transaction PAID CASH FOR STORE EQUIPMENT is\:

• debit Cash? credit Store Equipment.
• debit Store Supplies? credit Cash.
• debit Miscellaneous Expense? credit Store Equipment.
• debit Store Equipment? credit Cash.

10. Pesky Termite received $85 cash from Bad Wood Hotel for payment on account. The journal entry for Pesky Termite to record this transaction is\:

• debit Accounts Receivable/Bad Wood Hotel, $85? credit Cash, $85.
• debit Cash, $85? credit Accounts Receivable/Bad Wood Hotel, $85.
• debit Cash, $85? credit Sales, $85.
• debit Sales, $85? credit Cash, $85.