Acct Test Bank #3 Journal Entries - T-Accounts

A proper journal entry lists debits first, followed by credits.

• True

• False

Every journal entry must contain at least one debited account and one credited account.

• True

• False

The proper journal entry for recording the payment of storage rent is a debit to Storage Rent Expense and a credit to (a)   .

• Accounts Receivable

• Cash
• Storage Rent Expense

• Unearned Rent

Identify the fixed asset.

• Accounts Receivable

• Cash

• Furniture

• Supplies

Which of these describes how to record service revenue on account?

• Debit Accounts Receivable, credit Service Revenue

• Credit Cash, credit Service Revenue

• Debit Cash, credit Service Revenue

• Debit Accounts Receivable, debit Service Revenue

Which account increases on the debit side of a T-account?

• Rent Revenue

• Accounts Payable

• Cash

• Unearned Revenue

Match each transaction to the impact it has on accounts

• Debit an Asset, Credit an Asset

• Purchased supplies and paid with a check

• Debit an asset account, credit a revenue account

• Received a utility bill and will pay it later

• Debit an owner’s equity account, credit an asset account

• Owner of the business took a draw

• Debit an expense account, credit a liabi

• Performed services and billed the customer

• Debit a liability account, credit an asset account

• Made a payment on account

Indicate which accounts will increase when credited.

• A. John Doe, Capital -

• C. Sales Revenue -

• B. John Doe, Withdraw

• D. Supplies Expense

• E. Accounts Receivable

Place the steps for analyzing a transaction in the correct order.

• 1. Determine which accounts have been impacted. 2. Determine if these accounts must be debited or credited. 3. Determine by how much each account has increased or decreased.

• 1. Determine if these accounts must be debited or credited. 2. Determine which accounts have been impacted. 3. Determine by how much each account has increased or decreased.

• 1. Determine by how much each account has increased or decreased. 2. Determine which accounts have been impacted. 3. Determine if these accounts must be debited or credited.

Prepaid insurance has a typical debit balance and increases with a credit.

• True

• False