BA20 1.02

Betty Lou's Variety Store recorded cash and credit card sales of shoes, $500, pocketbooks, $300, and sales tax, $50, for a total of $850, Tape 33. The journal entry to record the transaction is:

• debit Sales-Shoes, $500, Sales-Pocketbooks, $300, Sales Tax Payable, $50; credit Cash, $850.

• debit Cash, $850; credit Sales-Shoes, $500, Sales-Pocketbooks, $300, Sales Tax Payable, $50.

• Sales Tax Payable, $50.

• debit Cash, $800; credit Sales, $800.

• debit Sales, $800; credit Cash, $800.

Booming Corporation purchased CDs on account from Hear All Supply Company, $500, Purchase Invoice No. 5. The correct entry to record the transaction is:

• debit Cash, $500; credit Hear All Supply Company, $500.

• debit Hear All Supply Company, $500; credit Cash, $500.

• debit Purchases-CDs, $500; credit Accounts Payable/Hear All Supply Company, $500.

• debit Accounts Payable/Hear All Supply Company, $500; credit Purchases-CDs, $500.

Booming Corporation returned some cracked CDs to Hear All Supply Company, $100, from Purchase Invoice No. 5, Debit Memo No. 55. The journal entry to record the transaction is:

• debit Accounts Payable, $100; credit Cash, $100.

• debit Cash, $100; credit Accounts Payable, $100.

• debit Accounts Payable/Hear All Supply Company, $100; credit Purchases Returns and Allowances-CDs, $100.

• debit Purchases Returns and Allowances-CDs, $100; credit Accounts Payable/Hear All Supply Company, $100.

Smith Corporation paid cash for audio department supplies, $800, Check No. 56. The journal entry to record the transaction is:

• debit Cash, $800; credit Supplies-Audio, $800.

• debit Cash, $800; credit Purchases, $800.

• debit Purchases, $800; credit Cash, $800.

• debit Supplies-Audio, $800; credit Cash, $800.

Starling Corporation paid cash for rent expense, $700, Check No. 58. The correct journal entry for the transaction is:

• debit Expenses, $700; credit Accounts Payable, $700.

• debit Accounts Payable, $700; credit Cash, $700.

• debit Rent Expense, $700; credit Cash, $700.

• debit Cash, $700; credit Rent Expense, $700.

Jan's Corporation paid cash for Utilities Expense, $600, Check No. 36. The journal entry for the transaction is:

• debit Accounts Payable, $600; credit Cash, $600.

• debit Cash, $600; credit Utilities Expense, $600.

• debit Expenses, $600; credit Accounts Payable, $600.

• debit Utilities Expense, $600; credit Cash, $600.

Candy Corporation issued a credit to Sweet Shop for damaged candy, $50, plus sales tax, $6, total $56, from Sales Invoice No. 5, Credit Memo No. 46. The journal entry to record the transaction is:

• debit Cash, $56; credit Sales, $56.

• debit Sales, $50; credit Cash, $50.

• debit Sales Returns and Allowances-Candy, $50, Sales Tax Payable, $6; credit Accounts Receivable/Sweet Shop, $56.

• debit Accounts Receivable/Sweet Shop, $56; credit Sales Returns and Allowances-Candy, $50, Sales Tax Payable, $6.

Daisy Corporation received cash on account from Hamilton's Music Store, $1,164, covering Sales Invoice No. 88 for CDs, $1,200 ($1,000 plus sales tax $200), less a 3% discount, $36, Receipt No. 81. The journal entry to record the transaction is:

• debit Sales, $1,200; credit Cash, $1,200.

• debit Sales, $1,164; credit Cash, $1,164.

• debit Cash $1,164, Sales Discount-CDs, $36; credit Accounts Receivable/Hamilton's Music Store, $1,200.

• debit Accounts Receivable/Hamilton's Music Store, $1,200; credit Cash, $1,164, Sales Discount-CDs, $36.

Blastin' Sound Music shop has $2,000 in Salaries-Audio, $2,500 in Salaries-Video, $325 in Social Security withholding, $85 in Medicare withholding, $400 in federal income tax withholding, $300 in state income tax withholding, and $240 in life insurance premiums withholding. The correct entry for recording this company payroll is:

• debit Salary Expense-Audio, $2,000, Salary Expense-Video, $2,500; credit Social Security Tax Payable, $325, Medicare Tax Payable, $85, Federal Income Tax Payable, $400, State Income Tax Payable, $300, Life Insurance Premiums Payable, $240, Cash $3,150.

• debit Social Security Tax Payable, $325, Medicare Tax Payable, $85, Federal Income Tax Payable, $400, State Income Tax Payable, $300, Life Insurance Premiums Payable, $240; credit Salary Expense-Audio, $2,000, Salary Expense-Video, $2,500, Cash, $3,150.

• debit Salary Expense-Audio, $2,000, Salary Expense-Video, $2,500, Cash, $3,150; credit Social Security Tax Payable, $325, Medicare Tax Payable, $85, Federal Income Tax Payable, $400, State Income Tax Payable, $300, Life Insurance Premiums Payable, $240.

• debit Salary Expense-Audio, $2,000, Salary Expense-Video, $2,500, Social Security Tax Payable, $325, Medicare Tax Payable, $85, Federal Income Tax Payable, $400, State Income Tax Payable, $300, Life Insurance Premiums Payable, $240; credit Cash, $3,150.

Darlings Incorporated sold baby equipment on account to Nanny's Boutique, $1,000 plus sales tax, $150, for a total of $1,150, Sales Invoice No. 11. The correct entry to record this transaction is:

• debit Sales, $1,000; credit Cash, $1,000.

• debit Cash, $1,000; credit Sales, $1,000.

• debit Account Receivable/Nanny's Boutique, $1,150; credit Sales-Baby Equipment, $1,000, Sales Tax Payable, $150.

• debit Sales-Baby Equipment, $1,000, Sales Tax Payable, $150; credit Account Receivable/Nanny's Boutique, $1,150.