24-25 Most Challenging Unit 4 Accounting Items

A law form received cash for services rendered, what would the correct journal entry be?

• debit Cash and credit Legal Fees-Expense.

• debit Legal Fees-Expense and credit Cash.

• debit Cash and credit Legal Fees-Revenue.

• debit Miscellaneous Expense and credit Legal Fees-Revenue.

A company paid cash for legal services, what would the correct journal entry be?

• debit Cash and credit Legal Fees-Expense.

• debit Legal Fees-Expense and credit Cash.

• debit Cash and credit Legal Fees-Revenue.

• debit Miscellaneous Expense and credit Legal Fees-Revenue.

Andy's Auto paid cash on account to Clay Duke Building, $395, covering Purchase Invoice No. 3279. The journal entry for Andy's Auto to record this transaction is:

• debit Accounts Receivable/Clay Duke Building, $395; credit Cash, $395.

• debit Accounts Payable/Clay Duke Building, $395; credit Cash, $395.

• debit Cash, $395; credit Accounts Payable/Clay Duke Building, $395.

• debit Cash, $395; credit Accounts Receivable/Clay Duke Building$395.

George's Hardware sold merchandise to Dustan on account for $670, plus a sales tax of $35. The journal entry for George's Hardware to record this transaction is:

• debit Accounts Receivable/Dustan, $705; credit Sales, $670, Sales Tax Payable $35.

• debit Sales, $670, Sales Tax Payable, $35; credit Accounts Payable/Dustan, $705.

• debit Accounts Payable/Dustan, $705; credit Sales, $670, Sales Tax Payable, $35.

• debit Sales, $670, Sales Tax Payable, $35; credit Accounts Receivable/Dustan, $705.

Amy's Ice-cream paid cash on account to Mayfield, $323; covering Purchase Invoice No. 812 for $340, less a 5% discount, $17.00. The journal entry for Amy's Ice-cream to record this transaction is:

• debit Accounts Payable/Mayfield, $323; credit Cash, $323.

• debit Purchases Discount, $17 and debit Cash, $323; credit Accounts Payable/Mayfield, $340.

  
  

• debit Accounts Payable/Mayfield, $340; credit Cash, $340.

  
  

• debit Accounts Payable/Mayfield, $340; credit Purchases Discount, $17 and credit Cash, $323.

Our company returned merchandise that was purchased on account to Lazy Susan, $400. The journal entry for us to record this transaction is:

• debit Purchases Returns and Allowances, $400; credit Purchases, $400.

• debit Accounts Receivable/Lazy Susan, $400; credit Purchases Returns and Allowances, $400.

• debit Accounts Payable/Lazy Susan, $400; credit Purchases Returns and Allowances, $400.

• debit Purchases Returns and Allowances, $400; credit Accounts Payable/Lazy Susan, $400.

The auditor discovered that a sale on account to Jones Company on June 5 for $560 was incorrectly charged to the account of Jackson Company. The journal entry to correct this error is:

• debit Accounts Receivable/Jones Company, $560; credit Accounts Receivable/Jackson Company, $560.

• debit Accounts Payable/Jones Company, $560; credit Accounts Payable/Jackson Company, $560.

• debit Accounts Receivable/Jackson Company, $560; credit Accounts Receivable/Jones Company, $560.

• debit Accounts Payable/Jackson Company, $560; credit Accounts Payable/Jones Company, $560.