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Accounting Transactions and Journal Entries

Total questions: 20

Worksheet time: 15mins

Name
Class
Date
1.

Mr. Davis used his credit card to cover his barbershop's $600 rent for the month. This transaction increases ( ).

a)

liabilities

b)

cash

c)

owner's equity

d)

assets

2.

Mr. Davis purchased $120 worth of hair clippers for his shop with his company credit card. This transaction increases in ( ) and ( ).

a)

owner's equity, assets

b)

assets, liabilities

c)

cash, liabilities

d)

assets, owner's equity

3.

On January 12, Bella Beauty Salon received $ 100 cash from Rebecca after washing ​ styling her hair that day. What is the account​ name for debit?​ ​ ​ (a)  

Choose from the below words
Service Revenue
Accounts Receivable
Cash
Rent Expense
4.

On January 16th, Rebecca's friend, Leona, received $85 worth of services from the salon because she loved Rebecca's hairstyle. Shepaid with a credit card instead of cash. What is account name for Credit?

a)

Cash

b)

Service Revenue

c)

Unearned Service Revenue

d)

Salary Payable

5.

Ms. Harvey started off her business with $ 20,000 cash. Record $20,000 as the account name "Owner's Capital. This transaction is recorded in ( ). Type your answer staring with Capital letter.

(a)  

6.

Match the following

a)

I purchased lamps to sell customers with cash, $2000

1.

Inventory

Debit 2000

Cash

Credit 2000

b)

I purchased a van for the business and paid on credit, $2000.

2.

Van

Debit 2000

Account Payable

Credit 2000

c)

I received the payment of $100 immediately after the job was completed

3.

Cash

Debit 100

Service Revenue

Credit 100

d)

I purchased a van for the business and paid with the cash. $2000

4.

Van

Debit 2000

Cash

Credit 2000

e)

I started off the business with $2000.

5.

Cash

Debit 2000

Owner's Equity

Credit 2000

7.

The customer paid for our service in advanced. We will complete the job in 3 months. What is the account name? We already recorded cash in debit. Start with the Capital Letter and two blanks between words.

(a)  

8.

Paid monthly amount due on credit card bills.

a)

Account Payable

Debit

Inventory

Credit

b)

Cash

Debit

Inventory

Credit

c)

Account Receivable

Debit

Account Payable

Credit

d)

Account Payable

Debit

Cash

Credit

9.

Retuned all supplies purchased.

Cash -

Supplies -

Start with the capital letter and one blank between each word.

(a)  

10.

On November 22, Mary bought $75 worth of supplies. After a long week of working, on November 27, she only had $ 30 worth of supplies remaining. What is the initial journal entry?

a)

11/22 Inventory Debit 75

Account Receivable 75

b)

11/22 Supplies Debit 75

Account Payable Credit 75

c)

11/22 Supplies Debit 75

Cash Credit 75

d)

11/22 Cash Debit 75

Supplies Credit 75

11.

Capital increase

a)

debit

b)

credit

12.

What is the effect on the accounting equation if a business incurs an expense paid in cash?

a)

Assets increase; Liabilities decrease

b)

Assets decrease; Owner's Equity decreases

c)

Assets decrease; Liabilities increase

d)

Liabilities decrease; Owner's Equity increases

13.

Which of the following accounts would typically have a debit balance?

a)

Revenue

b)

Liability

c)

Asset

d)

Equity

14.

Which account is typically debited when a company receives cash from a customer?

a)

Revenue

b)

Cash

c)

Accounts Receivable

d)

Accounts Payable

15.

What is the primary purpose of using debit and credit in accounting?

a)

To track inventory levels

b)

To record financial transactions

c)

To calculate tax liabilities

d)

To manage employee payroll

16.

The purchase of a desk on account will increase Office Furniture and will also increase

a)

Accounts Payable

b)

Cash in Bank

c)

Accounts Receivable

d)

Marie Krabish, Capital

17.

Purchase good on cash will effect

a)

Cash and Good

b)

Cash Good and Creditor

c)

Cash and Creditor

d)

Cash Creditor and Owner's Equity

18.

When a company makes a cash sale, which accounts are affected?

a)

Cash and Accounts Receivable

b)

Cash and Sales Revenue

c)

Inventory and Sales Revenue

d)

Accounts Payable and Sales Revenue

19.

If Company A has:

$2,300 in Cash

  • $400 in Accounts Payable

  • $500 in Accounts Receivable

  • $1,100 in Bank Loans

What is Company A's Owners Equity?

20.

What is this?

a)

Balance Sheet

b)

Income Statement (Profit and Loss Statement)

c)

ProForma

d)

Statement of Cash Flow