Accounting II - Unit 1 Test

In the transaction BOUGHT SUPPLIES ON ACCOUNT FROM WAKE SUPPLY CO., the source document is a/an:

• memorandum.

• check stub.

• invoice.

• receipt.

Accounts Payable/Douglas's Office Supplies, Accounts Payable/McKoy Equipment Company, and Accounts Payable/Sully Office Repair are all classified as:

• assets

• revenue

• liabilities

• owner's equity

Sally's Pools paid cash on account to Chem-Cycle Supply, $882; covering Purchase Invoice No. 2514 for $900, less a 2% discount, $18. The journal entry for Sally's Pools to record this transaction is:

• debit Accounts Payable/Chem-Cycle Supply, $882; credit Cash, $882.

• debit Accounts Payable/Chem-Cycle Supply, $900; credit Cash, $900.

• debit Accounts Payable/Chem-Cycle Supply, $900; credit Purchase

  Discount, $18, Cash, $882.

• debit Purchases Discount, $18, Cash, $882; credit Accounts

  Payable/Chem-Cycle Supply, $900.

Sammy's Clothes purchased merchandise on account from Polly's Warehouse for $246. The journal entry for Sammy's Clothes to record this transaction is:

• debit Accounts Payable/Polly's Warehouse, $246; credit Purchases,

  $246.

• debit Accounts Receivable/Sammy's Clothes, $246; credit Purchases,

  $246.

• debit Purchases, $246; credit Accounts Payable/Polly's Warehouse,

  $246.

• debit Purchases, $246; credit Accounts Receivable/Polly's Warehouse,

  $246.

Ben's Barbershop's balance sheet contains no inventory account. This company would be classified as a:

• merchandising business

• manufacturing business

• construction business

• service business

Ashton discovered that a sale on account to Paula Company on March 10 for $750 was incorrectly charged to Paul Company. The journal entry to correct this error is:

• debit Accounts Payable/Paul Company, $750; credit Accounts

  Payable/Paula Company, $750.

• debit Accounts Payable/Paula Company, $750; credit Accounts

  Payable/Paul Company, $750.

• debit Accounts Receivable/Paula Company, $750; credit Accounts

  Receivable/Paul Company, $750.

• debit Accounts Receivable/Paul Company, $750; credit Accounts

  Receivable/Paula Company, $750.

Sunny Side Furniture received $250 cash from Vince Turner for payment on account. The journal entry for Sunny Side Furniture to record this transaction is:

• debit Cash, $250; credit Sales, $250.

• debit Sales, $250; credit Cash, $250.

• debit Cash, $250; credit Accounts Receivable/Vince Turner, $250.

• debit Accounts Receivable/Vince Turner, $250; credit Cash, $250.

Jones Corporation paid cash for Administrative Supplies, $500, Check No. 24. The journal entry to record the transaction is:

• debit Purchases, $500; credit Cash, $500.

• debit Cash, $500; credit Purchases, $500.

• debit Supplies-Administrative, $500; credit Cash, $500.

• debit Cash, $500; credit Supplies-Administrative, $500.

Bertha's Bookstore has $1,000 in Salaries-Books, $2,000 in Salaries-Audio, $200 in Social Security withholding, $80 in Medicare, $300 in federal income tax withholding, $280 in state income tax withholding, and $150 in life insurance premiums. The correct entry for recording the company payroll is:

• debit Social Security Tax Payable, $200, Medicare Tax Payable, $80,

  Federal Income Tax Payable, $300, State Income Tax Payable, $280,

  Life Insurance Premiums Payable, $150; credit Salary Expense-Books,

  $1,000, Salary Expense-Audio, $2,000, Cash, $1,990.

• debit Salary Expense-Books, $1,000, Salary Expense-Audio, $2,000;

  credit Social Security Tax Payable, $200, Medicare Tax Payable, $80,

  Federal Income Tax Payable, $300, State Income Tax Payable, $280,

  Life Insurance Premiums Payable, $150, Cash, $1,990.

• debit Salary Expense-Books, $1,000, Salary Expense-Audio, $2,000,

  Cash, $1,990; credit Social Security Tax Payable, $200, Medicare Tax

  Payable, $80, Federal Income Tax Payable, $300, State Income Tax

  Payable, $280, Life Insurance Premiums Payable, $150.

• debit Salary Expense-Books, $1,000, Salary Expense-Audio, $2,000,

  Social Security Tax Payable, $200, Medicare Tax Payable, $80, Federal

  Income Tax Payable, $300, State Income Tax Payable, $280, Life

  Insurance Premiums Payable, $150; credit Cash, $1,990.

Daisy Corporation received cash on account from Hamilton's Music Store, $1,164, covering Sales Invoice No. 88 for CDs, $1,200 ($1,000 plus sales tax $200), less a 3% discount, $36, Receipt No. 81. The journal entry to record the transaction is:

• debit Sales, $1,200; credit Cash, $1,200.

• debit Sales, $1,164; credit Cash, $1,164.

• debit Cash $1,164, Sales Discount-CDs, $36; credit Accounts

  Receivable/Hamilton's Music Store, $1,200.

• debit Accounts Receivable/Hamilton's Music Store, $1,200; credit

  Cash, $1,164, Sales Discount-CDs, $36.