Bookkeeping Quiz 1

Invested Equipment for 60, 000 as additional capital.

• dr. Cash 60,000

  cr. Capital 60,000

• dr. Equipment 60, 000

  cr. Capital 60,000

• dr. Capital 60,000

  cr. Equipment 60,000

• dr. Equipment 60,000

  cr. Cash 60,000

Purchased supplies for 9,500 paying half in cash and the rest on account.

• dr. Supplies 9,500

  cr. Cash 9,500

• dr. Supplies 9,500

  cr. Accounts payable 9,500

• dr. Supplies 9, 5000

  cr. Cash 4,750

  cr. Accounts payable 4,750

• dr. Accounts payable 9,500

  cr. Cash 9,5000

Purchased equipment for 5, 000 on account and paid salaries for 3,000 and water bill for 1,500 in cash.

• dr. Equipment 5,000

  dr. salaries exp. 3, 000

  dr. Utilities exp. 1,500

  cr. Acc. Pay. 5, 000

  cr. Cash 4,500

• dr. equipment 5,000

  cr. Acc. Pay. 5,000

  dr. salaries exp. 3,000

  cr. cash 3,000

  dr. utilities exp. 1,500

  cr. cash 1,500

• dr. Equipment 5,000

  dr. salaries exp. 3, 000

  dr. Utilities exp. 1,500

  cr. Acc. pay. 9,500

• dr. Equipment 5,000

  dr. salaries exp. 3, 000

  dr. Utilities exp. 1,500

  cr. Cash 9,500

paid 40% of the accounts payable for equipment which was purchased on account for 5,000.

• dr. accounts pay. 5,000

  cr. cash 5, 000

• dr. equipment 5,000

  cr. accounts pay 5,000

• dr. cash 2,000

  cr. accounts pay. 2,000

• dr. accounts pay. 2,000

  cr. cash 2,000

Earned cash from customers for services rendered, 20, 000

• dr. Acc. Receivable 20,000

  cr. Revenue 20,000

• dr. Cash 20,000

  cr. Revenues 20,000

• dr. Revenues 20,000

  cr. Cash 20,000

• dr. cash 20,000

  cr. accounts receivable 20,000

Cash is debited.

• INCREASE

• DECREASE

Accounts receivable is credited.

• INCREASE

• DECREASE

Capital is credited

• INCREASE

• DECREASE

Accounts payable is debited

• INCREASE

• DECREASE

Service revenue is credited

• INCREASE

• DECREASE