Question 1

1. When closing the Advertising Expense account, debit:

Accepted Answer

C. Income Summary and credit Advertising Expense

Question 2

2. On the last day of April, Jack prepared the adjusting entries for his company. He has written \"Adjusting  Entries\" in the Account Title column and recorded April 30 in the date column. What will Jack do NEXT?

Accepted Answer

D. Write the title of the account debited in the Account Title column

Question 3

3. The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The correct adjusting  entry will be to debit:

Accepted Answer

C. Supplies Expense and credit Supplies $100.

Question 4

4. Mary is closing the income summary account. Her company had a net loss of $2,000. The correct journal  entry is to debit:

Accepted Answer

B. Owner\'s equity, and credit Income Summary, $2,000

Question 5

5. The owner\'s drawing account has a balance of $275. The correct entry to close the drawing account would be  to debit:

Accepted Answer

C. Owner\'s equity account, credit drawing account for $275.

Question 6

6. In preparing adjustment entries for his company, Steve has written \"Insurance Expense\" in the Account  Title column. What will he do NEXT?

Accepted Answer

A. Record the debit amount in the General Debit column

Question 7

7. Michael is preparing the closing entries for his company. He has closed all the income statement accounts  that have a credit balance. What is the NEXT step that he will perform?

Accepted Answer

C. Journalize an entry to close income statement accounts that have a debit balance

Question 8

8. Mary is preparing the closing entries for her company. After she has closed the Income Summary account,  what will she do NEXT?

Accepted Answer

B. Journalize an entry to close the owner\'s drawing account

Question 9

9. James is closing the income summary account. His company had a net income of $900. The correct journal  entry is to debit:

Accepted Answer

D. Income Summary, and credit Owner\'s Equity, $900.

Question 10

10. When closing the Miscellaneous Expense account, debit:

Accepted Answer

D. Income Summary and credit Miscellaneous Expense

Question 11

11. Steve is preparing the Post-Closing Trial Balance. After he has written \"Post Closing Trial Balance\" in the  heading section, what will he do NEXT?

Accepted Answer

C. Write the account titles of all general ledger accounts that have balances in the Account Title column

Question 12

12. Adam is preparing the Post-Closing Trial Balance. He has recorded all the account balances in the correct  column. What will he do NEXT?

Accepted Answer

A. Rule a single line below the last amount in each column

Question 13

13. The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance balance is $2,200. The  correct adjusting entry will be to debit:

Accepted Answer

B. Insurance Expense and credit Prepaid Insurance $1,500.

Question 14

14. The Sales account has a balance of $3,875. To close the Sales account, debit:

Accepted Answer

A. Sales $3,875 and credit Income Summary $3,875.

Question 15

15. The Good Morning Shop purchased merchandise on account from The Donut Plant for $300. What is the  journal entry for The Good Morning Shop to record this transaction?

Accepted Answer

C. Debit Purchases, $300; Credit Accounts Payable/The Donut Plant, $300.

Question 16

16. Billy Bob\'s B-B-Q paid cash to Pork Distributors, $418; covering Purchase Invoice No. 1921 for $440, less a  5% discount, $22.00. What is the journal entry for Billy Bob\'s B-B-Q to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Pork Distributors, $440; credit Purchases Discount $22 and credit Cash $418

Question 17

17. The Antique Shop purchased merchandise on account from Old Timers Supply for $128. What is the journal  entry for The Antique Shop to record this transaction?

Accepted Answer

C. Debit Purchases, $128; Credit Accounts Payable/Old Timers Supply, $128.

Question 18

18. Loopers & Cybrand Accountants purchase office supplies on account from Quick\'s Supply for $50. What is  the journal entry for Loopers & Cybrand Accountants to record this transaction?

Accepted Answer

C. Debit Office Supplies, $50; Credit Accounts Payable/Quick\'s Supply, $50.

Question 19

19. Impressive Signs paid cash to Peoria Paints, $513; covering Purchase Invoice No. 77 for $540, less a 5%  discount, $27.00. What is the journal entry for Impressive Signs to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Peoria Paints, $540; credit Purchases Discount $27 and credit Cash $513

Question 20

20. John\'s Appliances purchased merchandise on account from Electronic Supply for $990. What is the journal  entry for John\'s Appliances to record this transaction?

Accepted Answer

C. Debit Purchases, $990; Credit Accounts Payable/Electronic Supply, $990.

Question 21

21. Mike\'s Music paid cash to Sheet Music Supply, $294; covering Purchase Invoice No. 54 for $300, less a 2%  discount, $6.00. What is the journal entry for Mike\'s Music to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Sheet Music Supply, $300; credit Purchases Discount $6 and credit Cash $294.

Question 22

22. Fred\'s Furniture Store paid cash for advertising, $375. What is the journal entry to record this transaction?

Accepted Answer

B. Debit Advertising Expense, $375; credit Cash, $375

Question 23

23. Dollar Arcade paid cash to Cola Distributors, $245; covering Purchase Invoice No. 4131 for $250, less a 2%  discount, $5.00. What is the journal entry for Dollar Arcade to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Cola Distributors, $250; credit Purchases Discount $5 and credit Cash $245.

Question 24

24. The Fish Friends Pet Shop purchased fish (merchandise) on account from Goldfish Supply for $152. What is  the journal entry for Fish Friends Pet Shop to record this transaction?

Accepted Answer

C. Debit Purchases, $152; Credit Accounts Payable/Goldfish Supply, $152.

Question 25

25. Wally\'s Wallets paid cash to Leather Products Supply, $437; covering Purchase Invoice No.1284 for $460, less  a 5% discount, $23.00. What is the journal entry for Wally\'s Wallets to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Leather Products Supply, $460; credit Purchases Discount $23 and credit Cash  $437.

Question 26

26. Belinda\'s Rare Books purchased merchandise for cash from Book Distributors for $900. What is the journal  entry for Belinda\'s Rare Books to record this transaction?

Accepted Answer

D. Debit Purchases, $900; credit Cash, $900.

Question 27

27. Jones\' Hardware paid $750 cash for supplies from Miner\'s Supply. What is the journal entry for Jones\'  Hardware to record this transaction?

Accepted Answer

D. Debit Supplies, $750; credit Cash, $750.

Question 28

28. Lonneisha\'s Quilt Shop purchased merchandise for cash from Patch Quilt Distributors for $550. What is the  journal entry for Lonneisha\'s Quilt Shop to record this transaction?

Accepted Answer

D. Debit Purchases, $550; credit Cash, $550.

Question 29

29. Digital Electronics paid $189 cash for supplies from We Deliver Supplies. What is the journal entry for  Digital Electronics to record this transaction?

Accepted Answer

D. Debit Supplies, $189; credit Cash, $189.

Question 30

30. Computer Phones, Inc. paid cash to Software Supply, $817; covering Purchase Invoice No.2254 for $860, less  a 5% discount, $43.00. What is the journal entry for Computer Phones, Inc. to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Software Supply, $860; credit Purchases Discount $43 and credit Cash $817.

Question 31

31. Marvin\'s Motorcycles paid $125 cash for supplies from Stewart\'s Supplies. What is the journal entry for  Marvin\'s Motorcycles to record this transaction?

Accepted Answer

D. Debit Supplies, $125; credit Cash, $125.

Question 32

32. High Roads Mini Golf paid cash to Golf Equipment Distributors, $646; covering Purchase Invoice No.1746  for $680, less a 5% discount, $34.00. What is the journal entry for High Roads Mini Golf to record this  transaction?

Accepted Answer

C. Debit Accounts Payable/ Golf Equipment Distributors, $680; credit Purchases Discount $34 and credit  Cash $646.

Question 33

33. Starz Transport paid cash on account to Avery Aircraft, $995, covering Purchase Invoice No. 1691. What is  the journal entry for Starz Transport to record this transaction?

Accepted Answer

A. Debit Accounts Payable/ Avery Aircraft $995; credit Cash, $995

Question 34

34. Corrugated Box Company paid cash to Paper Supply, $686; covering Purchase Invoice No. 88 for $700, less a  2% discount, $14.00. What is the journal entry for Corrugated Box Company to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Paper Supply, $700; credit Purchases Discount $14 and credit Cash $686.

Question 35

35. Sluggers Sports Shop purchased merchandise for cash from Better Bats Warehouse for $850. What is the  journal entry for Sluggers Sports Shop to record this transaction?

Accepted Answer

D. Debit Purchases, $850; credit Cash, $850.

Question 36

36. Frazier\'s Car Stereo paid cash on account to Sound Wire Supply, $395, covering Purchase Invoice No. 3279.  What is the journal entry for Frazier\'s Car Stereo to record this transaction?

Accepted Answer

A. Debit Accounts Payable/ Sound Wire Supply $395; credit Cash, $395.

Question 37

37. Cara\'s CDs paid cash on account to Willie\'s Wholesale, $595, covering Purchase Invoice No. 60. What is the  journal entry for Cara\'s CDs to record this transaction?

Accepted Answer

A. Debit Accounts Payable/Willie\'s Wholesale $595; credit Cash, $595

Question 38

38. Betty\'s Boutique purchased merchandise for cash from Jackson Supply for $700. What is the journal entry  for Betty\'s Boutique to record this transaction?

Accepted Answer

D. Debit Purchases, $700; credit Cash, $700.

Question 39

39. Christina\'s Curtains paid cash for the telephone bill, $110. What is the journal entry to record this  transaction?

Accepted Answer

B. Debit Telephone Expense, $110; credit Cash, $110

Question 40

40. Gill\'s Grills purchased store supplies on account from Sellers Warehouse for $829. What is the journal  entry for Gill\'s Grills to record this transaction?

Accepted Answer

C. Debit Supplies, $829; Credit Accounts Payable/Sellers Warehouse, $829.

Question 41

41. Aquisha\'s Bookkeeping paid cash for the telephone bill, $134. What is the journal entry to record this  transaction?

Accepted Answer

B. Debit Telephone Expense, $134; credit Cash, $134.

Question 42

42. Bill\'s Grocery purchased merchandise on account from Veggie Wholesale for $249. What is the journal entry  for Bill\'s Grocery to record this transaction?

Accepted Answer

C. Debit Purchases, $249; Credit Accounts Payable/Veggie Wholesale, $249.

Question 43

43. Jacob Doe Tractor purchased store supplies on account from Tractor Supply for $942. What is the journal  entry for Jacob Doe Tractor to record this transaction?

Accepted Answer

C. Debit Supplies, $942; Credit Accounts Payable/Tractor Supply, $942.

Question 44

44. Curt\'s Cabinets paid cash to Phil\'s Fasteners, $441; covering Purchase Invoice No. 54 for $450, less a 2%  discount, $9.00. What is the journal entry for Curt\'s Cabinets to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Phil\'s Fasteners, $450; credit Purchases Discount $9 and credit Cash $441.

Question 45

45. Carl\'s CDs purchased store supplies on account from Mason Supply for $425. What is the journal entry for  Carl\'s CDs to record this transaction?

Accepted Answer

C. Debit Supplies, $425; Credit Accounts Payable/Mason Supply, $425.

Question 46

46. The Jungle Gym returned merchandise that was purchased on account to Footware Wholesale, $600. What is  the journal entry for The Jungle Gym to record this transaction?

Accepted Answer

A. Debit Accounts Payable/Footware Wholesale, $600; Credit Purchases Returns and Allowances, $600.

Question 47

47. Wanda\'s Wigs paid cash to Wig Warehouse, $323; covering Purchase Invoice No. 812 for $340, less a 5%  discount, $17.00. What is the journal entry for Wanda\'s Wigs to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Wig Warehouse, $340; credit Purchases Discount $17 and credit Cash $323.

Question 48

48. Mike\'s Auto Shop purchases supplies on account from Automotive Supply for $435. What is the journal  entry for Mike\'s Auto Shop to record this transaction?

Accepted Answer

C. Debit Supplies, $435; Credit Accounts Payable/Automotive Supply, $435.

Question 49

49. Free Time Fishing paid $600 cash for supplies from Go Office Supply. What is the journal entry for Free  Time Fishing to record this transaction?

Accepted Answer

D. Debit Supplies, $600; credit Cash, $600.

Question 50

50. Seahawk Fastpitch Softball paid cash on account to Community Field, $295, covering Purchase Invoice No.  14. What is the journal entry for Seahawk Fastpitch Softball to record this transaction?

Accepted Answer

A. Debit Accounts Payable/ Community Field $295; credit Cash, $295.

Question 51

51. Tiny\'s Toys returned merchandise that was purchased on account to Jonah\'s Distributing, $150. What is the  journal entry for Tiny\'s Toys to record this transaction?

Accepted Answer

A. Debit Accounts Payable/Jonah\'s Distributing, $150; Credit Purchases Returns and Allowances, $150.

Question 52

52. Dipper\'s Ice Cream Parlor returned merchandise that was purchased on account to The Ice Cream Company,  $600. What is the journal entry for Dipper\'s Ice Cream Parlor to record this transaction?

Accepted Answer

A. Debit Accounts Payable/The Ice Cream Company, $600; Credit Purchases Returns and Allowances, $600

Question 53

53. Valley Products paid cash to Carolina Distributors, $882; covering Purchase Invoice No. 1734 for $900, less a  2% discount, $18.00. What is the journal entry for Valley Products to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Carolina Distributors, $900; credit Purchases Discount $18 and credit Cash  $882.

Question 54

54. Champs Country Club paid cash to Masters Jacket Supply, $931; covering Purchase Invoice No. 33 for $950,  less a 2% discount, $19.00. What is the journal entry for Champs Country Club to record this transaction?

Accepted Answer

C. Debit Accounts Payable/ Masters Jacket Supply, $950; credit Purchases Discount $19 and credit Cash  $931.

Question 55

55. The Lil Kids Candy store purchased jelly beans (merchandise) on account from Jelly Belly Supply for $250.  What is the journal entry for Lil Kids Candy to record this transaction?

Accepted Answer

C. Debit Purchases, $250; Credit Accounts Payable/Jelly Belly Supply, $250.

Question 56

56. Taco Home paid cash for advertising, $400. What is the journal entry to record this transaction?

Accepted Answer

B. Debit Advertising Expense, $400; credit Cash, $400.

Question 57

57. Sonny\'s Skateboard Shop paid cash on account to Boards Unlimited, $795, covering Purchase Invoice No.  290. What is the journal entry for Sonny\'s Skateboard Shop to record this transaction?

Accepted Answer

A. Debit Accounts Payable/ Boards Unlimited $795; credit Cash, $795.

Question 58

58. Terry\'s Tree Removal paid cash to Sam\'s Sharpening Service, $735; covering Purchase Invoice No. 1415 for  $750, less a 2% discount, $15.00. What is the journal entry for Terry\'s Tree Removal to record this  transaction?

Accepted Answer

C. Debit Accounts Payable/ Sam\'s Sharpening Service, $750; credit Purchases Discount $15 and credit Cash  $735.

Question 59

59. Classic Cars, Inc. paid $500 cash for supplies from Wendy\'s Supplies. What is the journal entry for Classic  Cars, Inc. to record this transaction?

Accepted Answer

D. Debit Supplies, $500; credit Cash, $500.

Question 60

60. River Road Farm Supply paid cash to C-V Chemical Distributors, $779; covering Purchase Invoice No. 623  for $820, less a 5% discount, $41.00. What is the journal entry for River Road Farm Supply to record this  transaction?

Accepted Answer

C. Debit Accounts Payable/ C-V Chemical Distributors, $820; credit Purchases Discount $41 and credit Cash  $779.

Question 61

61. National Looms paid cash to Cotton Gin Warehouse, $392; covering Purchase Invoice No. 314 for $400, less a  2% discount, $8.00. What is the journal entry for National Looms to record this transaction?

Accepted Answer

C. Debit Accounts Payable/Cotton Gin Warehouse, $400; credit Purchases Discount $8 and credit Cash $392.

Question 62

62. Michael\'s Hardware purchased merchandise on account from Hardware Supply for $690. What is the journal  entry for Michael\'s Hardware to record this transaction?

Accepted Answer

C. Debit Purchases, $690; Credit Accounts Payable/Hardware Supply, $690.

Question 63

63. Icy Treats purchased merchandise for cash from Flavor Supply for $100. What is the journal entry for Icy  Treats to record this transaction?

Accepted Answer

D. Debit Purchases, $100; credit Cash, $100.

Question 64

64. Wally\'s Watches returned merchandise that was purchased on account to Timer\'s Distributing, $400. What is  the journal entry for Wally\'s Watches to record this transaction?

Accepted Answer

A. Debit Accounts Payable/Timer\'s Distributing, $400; Credit Purchases Returns and Allowances, $400.

Accounting Chapter 8 – 9 Study Guide Answers

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards