Journalizing Business Transactions Quiz

ABC Company sold merchandise for $500 cash. What is the correct journal entry?

• Debit: Cash $500, Credit: Sales Revenue $500

• Debit: Sales Revenue $500, Credit: Cash $500

• Debit: Merchandise Inventory $500, Credit: Cash $500

• Debit: Cash $500, Credit: Accounts Receivable $500

XYZ Corporation purchased office supplies on account for $200. What is the correct journal entry?

• Debit: Office Supplies $200, Credit: Cash $200

• Debit: Office Supplies $200, Credit: Accounts Payable $200

• Debit: Accounts Payable $200, Credit: Office Supplies $200

• Debit: Cash $200, Credit: Office Supplies $200

A business owner withdrew $300 for personal use. What is the correct journal entry?

• Debit: Cash $300, Credit: Owner's Drawings $300

• Debit: Owner's Drawings $300, Credit: Cash $300

• Debit: Cash $300, Credit: Capital $300

• Debit: Owner's Drawings $300, Credit: Revenue $300

DEF Services provided consulting services and billed the client $1,000. What is the correct journal entry?

• Debit: Cash $1,000, Credit: Service Revenue $1,000

• Debit: Accounts Receivable $1,000, Credit: Service Revenue $1,000

• Debit: Service Revenue $1,000, Credit: Accounts Receivable $1,000

• Debit: Cash $1,000, Credit: Accounts Payable $1,000

GHI Company paid $150 for utility expenses. What is the correct journal entry?

• Debit: Utility Expense $150, Credit: Accounts Payable $150

• Debit: Cash $150, Credit: Utility Expense $150

• Debit: Utility Expense $150, Credit: Cash $150

• Debit: Accounts Payable $150, Credit: Cash $150

JKL Retail received cash of $2,000 from a customer for a prior sale. What is the correct journal entry?

• Debit: Cash $2,000, Credit: Sales Revenue $2,000

• Debit: Cash $2,000, Credit: Accounts Receivable $2,000

• Debit: Accounts Receivable $2,000, Credit: Cash $2,000

• Debit: Sales Revenue $2,000, Credit: Cash $2,000

MNO Corporation purchased a computer for $1,200, paying $300 in cash and the rest on account. What is the correct journal entry?

• Debit: Equipment $1,200, Credit: Cash $300, Credit: Accounts Receivable $900

• Debit: Equipment $1,200, Credit: Cash $300, Credit: Accounts Payable $900

• Debit: Cash $300, Credit: Equipment $1,200, Credit: Accounts Payable $900

• Debit: Accounts Payable $900, Credit: Equipment $1,200, Credit: Cash $300

PQR Company paid $75 for a business lunch. What is the correct journal entry?

• Debit: Lunch Expense $75, Credit: Cash $75

• Debit: Meals and Entertainment Expense $75, Credit: Cash $75

• Debit: Cash $75, Credit: Meals and Entertainment Expense $75

• Debit: Meals and Entertainment Expense $75, Credit: Accounts Payable $75

STU Corporation issued $5,000 in common stock for cash. What is the correct journal entry?

• Debit: Cash $5,000, Credit: Common Stock $5,000

• Debit: Common Stock $5,000, Credit: Cash $5,000

• Debit: Cash $5,000, Credit: Revenue $5,000

• Debit: Common Stock $5,000, Credit: Revenue $5,000

VWX Enterprises borrowed $10,000 from the bank, signing a note payable. What is the correct journal entry?

• Debit: Cash $10,000, Credit: Notes Payable $10,000

• Debit: Notes Payable $10,000, Credit: Cash $10,000

• Debit: Cash $10,000, Credit: Accounts Payable $10,000

• Debit: Cash $10,000, Credit: Loans Payable $10,000