Accounting Chapter 8 – 9 Study Guide Answers

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1. When closing the Advertising Expense account, debit:
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C. Income Summary and credit Advertising Expense
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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?
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D. Write the title of the account debited in the Account Title column
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3. The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The correct adjusting entry will be to debit:
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C. Supplies Expense and credit Supplies $100.
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4. Mary is closing the income summary account. Her company had a net loss of $2,000. The correct journal entry is to debit:
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B. Owner’s equity, and credit Income Summary, $2,000
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5. The owner’s drawing account has a balance of $275. The correct entry to close the drawing account would be to debit:
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C. Owner’s equity account, credit drawing account for $275.
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6. In preparing adjustment entries for his company, Steve has written \”Insurance Expense\” in the Account Title column. What will he do NEXT?
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A. Record the debit amount in the General Debit column
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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?
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C. Journalize an entry to close income statement accounts that have a debit balance
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8. Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT?
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B. Journalize an entry to close the owner’s drawing account
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9. James is closing the income summary account. His company had a net income of $900. The correct journal entry is to debit:
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D. Income Summary, and credit Owner’s Equity, $900.
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10. When closing the Miscellaneous Expense account, debit:
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D. Income Summary and credit Miscellaneous Expense
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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?
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C. Write the account titles of all general ledger accounts that have balances in the Account Title column
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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?
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A. Rule a single line below the last amount in each column
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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:
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B. Insurance Expense and credit Prepaid Insurance $1,500.
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14. The Sales account has a balance of $3,875. To close the Sales account, debit:
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A. Sales $3,875 and credit Income Summary $3,875.
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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?
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C. Debit Purchases, $300; Credit Accounts Payable/The Donut Plant, $300.
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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?
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C. Debit Accounts Payable/ Pork Distributors, $440; credit Purchases Discount $22 and credit Cash $418
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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?
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C. Debit Purchases, $128; Credit Accounts Payable/Old Timers Supply, $128.
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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?
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C. Debit Office Supplies, $50; Credit Accounts Payable/Quick’s Supply, $50.
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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?
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C. Debit Accounts Payable/ Peoria Paints, $540; credit Purchases Discount $27 and credit Cash $513
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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?
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C. Debit Purchases, $990; Credit Accounts Payable/Electronic Supply, $990.
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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?
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C. Debit Accounts Payable/ Sheet Music Supply, $300; credit Purchases Discount $6 and credit Cash $294.
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22. Fred’s Furniture Store paid cash for advertising, $375. What is the journal entry to record this transaction?
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B. Debit Advertising Expense, $375; credit Cash, $375
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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?
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C. Debit Accounts Payable/ Cola Distributors, $250; credit Purchases Discount $5 and credit Cash $245.
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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?
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C. Debit Purchases, $152; Credit Accounts Payable/Goldfish Supply, $152.
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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?
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C. Debit Accounts Payable/ Leather Products Supply, $460; credit Purchases Discount $23 and credit Cash $437.
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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?
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D. Debit Purchases, $900; credit Cash, $900.
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27. Jones’ Hardware paid $750 cash for supplies from Miner’s Supply. What is the journal entry for Jones’ Hardware to record this transaction?
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D. Debit Supplies, $750; credit Cash, $750.
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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?
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D. Debit Purchases, $550; credit Cash, $550.
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29. Digital Electronics paid $189 cash for supplies from We Deliver Supplies. What is the journal entry for Digital Electronics to record this transaction?
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D. Debit Supplies, $189; credit Cash, $189.
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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?
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C. Debit Accounts Payable/ Software Supply, $860; credit Purchases Discount $43 and credit Cash $817.
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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?
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D. Debit Supplies, $125; credit Cash, $125.
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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?
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C. Debit Accounts Payable/ Golf Equipment Distributors, $680; credit Purchases Discount $34 and credit Cash $646.
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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?
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A. Debit Accounts Payable/ Avery Aircraft $995; credit Cash, $995
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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?
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C. Debit Accounts Payable/ Paper Supply, $700; credit Purchases Discount $14 and credit Cash $686.
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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?
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D. Debit Purchases, $850; credit Cash, $850.
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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?
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A. Debit Accounts Payable/ Sound Wire Supply $395; credit Cash, $395.
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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?
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A. Debit Accounts Payable/Willie’s Wholesale $595; credit Cash, $595
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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?
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D. Debit Purchases, $700; credit Cash, $700.
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39. Christina’s Curtains paid cash for the telephone bill, $110. What is the journal entry to record this transaction?
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B. Debit Telephone Expense, $110; credit Cash, $110
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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?
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C. Debit Supplies, $829; Credit Accounts Payable/Sellers Warehouse, $829.
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41. Aquisha’s Bookkeeping paid cash for the telephone bill, $134. What is the journal entry to record this transaction?
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B. Debit Telephone Expense, $134; credit Cash, $134.
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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?
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C. Debit Purchases, $249; Credit Accounts Payable/Veggie Wholesale, $249.
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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?
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C. Debit Supplies, $942; Credit Accounts Payable/Tractor Supply, $942.
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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?
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C. Debit Accounts Payable/ Phil’s Fasteners, $450; credit Purchases Discount $9 and credit Cash $441.
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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?
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C. Debit Supplies, $425; Credit Accounts Payable/Mason Supply, $425.
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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?
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A. Debit Accounts Payable/Footware Wholesale, $600; Credit Purchases Returns and Allowances, $600.
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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?
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C. Debit Accounts Payable/ Wig Warehouse, $340; credit Purchases Discount $17 and credit Cash $323.
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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?
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C. Debit Supplies, $435; Credit Accounts Payable/Automotive Supply, $435.
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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?
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D. Debit Supplies, $600; credit Cash, $600.
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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?
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A. Debit Accounts Payable/ Community Field $295; credit Cash, $295.
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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?
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A. Debit Accounts Payable/Jonah’s Distributing, $150; Credit Purchases Returns and Allowances, $150.
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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?
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A. Debit Accounts Payable/The Ice Cream Company, $600; Credit Purchases Returns and Allowances, $600
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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?
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C. Debit Accounts Payable/ Carolina Distributors, $900; credit Purchases Discount $18 and credit Cash $882.
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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?
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C. Debit Accounts Payable/ Masters Jacket Supply, $950; credit Purchases Discount $19 and credit Cash $931.
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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?
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C. Debit Purchases, $250; Credit Accounts Payable/Jelly Belly Supply, $250.
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56. Taco Home paid cash for advertising, $400. What is the journal entry to record this transaction?
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B. Debit Advertising Expense, $400; credit Cash, $400.
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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?
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A. Debit Accounts Payable/ Boards Unlimited $795; credit Cash, $795.
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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?
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C. Debit Accounts Payable/ Sam’s Sharpening Service, $750; credit Purchases Discount $15 and credit Cash $735.
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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?
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D. Debit Supplies, $500; credit Cash, $500.
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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?
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C. Debit Accounts Payable/ C-V Chemical Distributors, $820; credit Purchases Discount $41 and credit Cash $779.
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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?
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C. Debit Accounts Payable/Cotton Gin Warehouse, $400; credit Purchases Discount $8 and credit Cash $392.
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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?
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C. Debit Purchases, $690; Credit Accounts Payable/Hardware Supply, $690.
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63. Icy Treats purchased merchandise for cash from Flavor Supply for $100. What is the journal entry for Icy Treats to record this transaction?
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D. Debit Purchases, $100; credit Cash, $100.
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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?
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A. Debit Accounts Payable/Timer’s Distributing, $400; Credit Purchases Returns and Allowances, $400.

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