Accounting 1-2

Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:

• Owner's equity

• Expenses

• Liabilities

• Revenue

The transaction BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE would result in the journal entry:

• debit Accounts Payable/Davis Supply Store and credit Supplies.

• debit Supplies and credit Accounts Payable/Davis Supply Store.

• debit Supplies and credit Supplies Expense

• debit Supplies Expense and credit Supplies

The correct journal entry for the transaction RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT is:

• debit Cash; credit Dana Jackson, Capital.

• debit Cash; credit Dana Jackson, Drawing.

• debit Dana Jackson, Capital'; credit Cash.

• debit Miscellaneous Expense; credit Dana Jackson Capital.

The correct journal entry for the transaction BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY is:

• debit Accounts Payable/Steinman Company and credit Cash.

• debit Accounts Payable/Steinman Company and credit Supplies.

• debit Supplies and credit Accounts Payable/Steinman Company.

• debit Supplies and credit Cash.

The correct journal entry for the transaction PAID CASH ON ACCOUNT TO AVIS SUPPLY COMPANY is:

• debit Cash and credit Owner's Capital.

• debit Cash and credit Owner's Drawing.

• debit Accounts Payable/Avis Supply Company and credit Cash.

• debit Accounts Receivable/Avis Supply company and credit Cash.

What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?

• Assets are decreased by $1,000.

• Assets are decreased by $2,000.

• Assets are increased by $1,000.

• Assets are increased by $2,000.

What is the correct entry for the transaction HANS SCHMIDT INVESTED $2,000 OF HIS OWN MONEY INTO THE BUSINESS?

• HANS SCHMIDT, Capital; credit Cash

• debit Miscellaneous Expense; credit HANS SCHMIDT, Capital

• debit Cash; credit HANS SCHMIDT, Capital

• debit Cash; credit Hans Schmidt, Drawing

Cash, office equipment, and prepaid insurance are all classified as:

• assets.

• liabilities.

• owner's equity.

• revenue.

The transaction RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT would result in the journal entry:

• debit Cash; credit Frank Harper, Capital.

• debit Cash; credit Frank Harper, Drawing.

• debit Frank Harper, Capital; credit Cash.

• debit Frank Harper, Drawing; credit Cash.

What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply?

• Assets decrease by $300 and owner's equity decreases by $300.

• Assets increase by $300 and owner's equity increases by $300.

• Assets increase by $300 and liabilities decrease by $300.

• Assets decrease by $300 and liabilities decrease by $300.