Double entry quiz

J. Gibson started a business with $70,000 which was deposited into the business' bank account. The two accounts being affected are bank and ______

D. Michaels paid rent in the amount of $5000, using funds from the company's bank account. In their books bank will be

• Debited

• Credited

G. Hobbs bought goods from us on credit and therefore owes us money. In our books we will _____ G. Hobbs' account

• Debit

• Credit

We bought goods from D. Davidson and paid $500 in cash. Which two accounts are being affected?

• Purchases and Cash

• Sales and cash

• Purchases and D. Davidson

• Sales and D. Davidson

We took a loan from S. Lorry and they paid us cash $10,000. How would this be recorded in our books?

• Debit Cash

  Credit S. Lorry

• Debit S. Lorry

  Credit Cash

• Debit bank

  Credit S. Lorry

• Credit S. Lorry

  Debit bank

When we started our business, in order to record the $100k invested in capital we _____ the capital account

• Debited

• Credited

When we paid $500 in insurance, how did we record this?

• Debit Cash

  Credit Insurance

• Debit Insurance

  Credit Cash

• Debit Bank

  Credit Insurance

• Debit Insurance

  Credit Bank

We sold goods to L. Higgs on credit. Which two accounts are being affected?

• L. Higgs and Purchases

• L. Higgs and Sales

• Sales and Cash

• Purchases and Cash

When we purchased goods, how did we record this?

• Debit purchases

• Credit purchases

• Debit inventory

• Credit inventory

When we bought stationery and paid cash, how did we record this ?

• Debit cash

  Credit stationery

• Debit Stationery

  Credit cash

• Debit inventory

  Credit Cash

• Debit Cash

  Credit Inventory