Intermediate Accounting Chapter 2 Review

1. Issued 30,000 shares of no-par common stock in exchange for $300,000 in cash. What is the debited account?

• Cash

• Common Stock

• Equipment

• Notes Payable

1. Purchased equipment at a cost of $40,000. Cash of $10,000 was paid and a note payable to the seller was signed for the balance owed. What is the debited account?

• Cash

• Common Stock

• Equipment

• Notes Payable

1. Issued 30,000 shares of no-par common stock in exchange for $300,000 in cash. What is the credited account?

• Cash

• Common Stock

• Equipment

• Notes Payable

1. Purchased equipment at a cost of $40,000. Cash of $10,000 was paid and a note payable to the seller was signed for the balance owed. What is/are the credited account(s)?

• Cash

• Common Stock

• Equipment

• Notes Payable

1. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Which is the debited account?

• Inventory

• Accounts Receivable

• Accounts Payable

• Sales Revenue

1. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Which is the credited account?

• Inventory

• Accounts Receivable

• Accounts Payable

• Sales Revenue

1. PART 1: Sold goods to customers on account for $120,000. The cost of the goods sold was $70,000. Which is the debited account?

• Inventory

• Accounts Receivable

• Accounts Payable

• Sales Revenue

1. PART 1: Sold goods to customers on account for $120,000. The cost of the goods sold was $70,000. Which is the credited account?

• Inventory

• Accounts Receivable

• Accounts Payable

• Sales Revenue

1. PART 2: Sold goods to customers on account for $120,000. The cost of the goods sold was $70,000. Which is the credited account?

• Inventory

• Cost of Goods Sold

• Accounts Payable

• Sales Revenue

1. PART 2: Sold goods to customers on account for $120,000. The cost of the goods sold was $70,000. Which is the debited account?

• Inventory

• Cost of Goods Sold

• Accounts Payable

• Sales Revenue