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Journalizing Business Transactions Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

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

a)

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

b)

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

c)

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

d)

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

2.

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

a)

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

b)

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

c)

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

d)

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

3.

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

a)

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

b)

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

c)

Debit: Cash $300, Credit: Capital $300

d)

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

4.

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

a)

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

b)

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

c)

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

d)

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

5.

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

a)

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

b)

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

c)

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

d)

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

6.

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

a)

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

b)

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

c)

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

d)

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

7.

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

a)

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

b)

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

c)

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

d)

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

8.

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

a)

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

b)

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

c)

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

d)

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

9.

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

a)

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

b)

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

c)

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

d)

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

10.

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

a)

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

b)

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

c)

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

d)

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

11.

YZA Company paid $250 for a one-year insurance policy. What is the correct journal entry?

a)

Debit: Insurance Expense $250, Credit: Cash $250

b)

Debit: Prepaid Insurance $250, Credit: Cash $250

c)

Debit: Cash $250, Credit: Prepaid Insurance $250

d)

Debit: Cash $250, Credit: Insurance Expense $250

12.

BCD Company received $400 for a service that will be provided next month. What is the correct journal entry?

a)

Debit: Cash $400, Credit: Service Revenue $400

b)

Debit: Cash $400, Credit: Unearned Revenue $400

c)

Debit: Unearned Revenue $400, Credit: Cash $400

d)

Debit: Service Revenue $400, Credit: Accounts Receivable $400

13.

EFG Corporation sold equipment for $800, which had a book value of $600. What is the correct journal entry?

a)

Debit: Cash $800, Credit: Equipment $600, Credit: Loss on Sale of Equipment $200

b)

Debit: Cash $800, Credit: Equipment $600, Credit: Gain on Sale of Equipment $200

c)

Debit: Cash $800, Credit: Loss on Sale of Equipment $200, Credit: Equipment $600

d)

Debit: Equipment $600, Credit: Cash $800, Credit: Gain on Sale of Equipment $200

14.

HIJ LLC paid $50 in interest on a loan. What is the correct journal entry?

a)

Debit: Interest Payable $50, Credit: Cash $50

b)

Debit: Interest Expense $50, Credit: Cash $50

c)

Debit: Cash $50, Credit: Interest Expense $50

d)

Debit: Cash $50, Credit: Loans Payable $50

15.

KLM Inc. recorded depreciation expense of $400 for the month. What is the correct journal entry?

a)

Debit: Accumulated Depreciation $400, Credit: Depreciation Expense $400

b)

Debit: Depreciation Expense $400, Credit: Accumulated Depreciation $400

c)

Debit: Depreciation Expense $400, Credit: Cash $400

d)

Debit: Cash $400, Credit: Depreciation Expense $400