Question

Identify the debit or credit for the following transactions. Remember, every single transaction has at least one debit and at least one credit. However, I just want you to identify what is requested.

1,Sold merchandise on account. Identify the sale entry debit

2

Wages were accrued but not paid at December 31, year-end. Identify the adjusting entry credit.

3.

Adjusting entry to record depreciation of office equipment. Identify the credit.

4.

Fees were earned but not billed at December 31, year-end. Identify the adjusting entry debit.

5,

The unearned rent revenue account at December 31, had a balance of $5,000, representing an advance payment received on Nov. 1st for 5 months rent. Identify the adjusting entry credit.

6.

On December 31, supplies had a balance of $4,150, but supplies on hand amounted to $2,100. Identify the adjusting entry debit.

7.

A note was issued to purchase $6,000 of inventory. Identify the debit.

8.

ABC company received a note from XYZ company for the settlement of XYZ Company's accounts receivable. Identify the debit.

9.

Which of the following accounts would not be closed? Prepaid Expenses, Wages Expense, Rent Revenue?

10.

Thinking back to bank reconciliations: If the bank collects a note on the company's behalf, what account would be debited?

11.

If a check is returned as non-sufficent funds (meaning there were not enough funds to cover the check that was previously deposited), what account would the company credit?

12.

When a company receives cash, what account is debited?

13.

When a company pays cash, what account is credited?

14.

If a company records that it received a $120 check from a customer to satisfy the account receivable, but then realizes the check was actually for $210, what account would be credited to correct the account?

15.

Sold merchandise on account. What is the credit for the cost of merchandise sold entry?

Choices are :

Note Payable,Unearned Rent Revenue, Cost of Goods Sold, Cash, Depreciation Expense, Miscellaneous Expense, Sales Revenue, Wages Payable, Fees Earned, Wages Expense, Accounts Receivable, Inventory, Prepaid Expenses, Note Receivable. Office Equipment, Accounts Payable, Supplies Expense. Rent Revenue, Accumulated Depreciation. Supplies

Answer 1

1	Debit	Accounts Receivable
2	Credit	Wages payable
3	Credit	Accumulated Depreciation
4	Debit	Accounts Receivable
5	Credit	Rent revenue
6	Debit	Supplies expense
7	Debit	Inventory
8	Debit	Note Receivable
9	Prepaid Expenses is not closed
10	Debit	Cash
11	Credit	Cash
12	Debit	Cash
13	Credit	Cash
14	Credit	Accounts Receivable
15	Credit	Inventory