Question

 Which of the following is not a possible journal entry?

 Debit Expenses; Credit Assets

 Debit Expenses; Credit Liabilities

 Debit Assets; Credit Revenues

 Credit Assets; Credit Revenues

 Heimer, Inc. provides services to customers totaling $14,000, for which it

 billed the customers. How would the transaction be recorded?

 DR: Accounts Receivable 14,000 CR: Service Revenue 14,000

 DR: Cash 14,000 CR: Service Revenue 14,000

 DR: Accounts Payable 14,000 CR: Service Revenue 14,000

 DR: Accounts Receivable 14,000 CR: Cash 14,000

 When a company receives a prepayment from a customer and provides services to the customer 4 months later, what is the effect on the

 company's accounting equation when the company provides the services?

 Assets decrease and stockholders' equity decreases

 Assets decrease and liabilities decrease

 Assets increase and stockholders' equity increases

 Liabilities decrease and stockholders' equity increases

 Donaldson Corp wanted to expand the size of its manufacturing plant in order to generate more profits. The company decided to purchase the building adjacent to its existing plant for $140,000 by entering into a contract with the seller to make 10 annual payments to them plus interest starting one year after purchase. The purchase would be recorded by Donaldson as:

 DR: Buildings Expense 140,000 CR: Cash 140,000

 DR: Buildings 140,000 CR: Cash 140,000

 DR: Buildings 140,000 CR: Notes Payable 140,000

 DR: Notes Payable 140,000 CR: Buildings 140,000

 Which of the accounts are increased on the debit side and decreased on the credit side?

 Assets, liabilities, and revenues

 Liabilities, stockholders' equity, and revenues

 Expenses, assets, and dividends

 Expenses, liabilities, and assets

 Assume that $24,000 cash is paid for rent on January 1 to cover the next year. The appropriate joumal entry on January 1 is:

 DR: Prepaid Rent 24,000 CR: Cash 24,000

 DR: Prepaid Rent 24,000 CR: Accounts Payable 24,000

 DR: Cash 24,000 CR: Rent Expense 24,000

 DR: Rent Expense 24,000 CR: Cash 24,000

 A company receives a $95,000 cash deposit from a customer on October 15 but will not provide services until November 20. Which of the following statements is true?

 The company records service revenue on October 15.

 The company records a liability on October 15.

 The company records nothing on November 20.

 The company records the cash collection on November 20.

 Carrier Rent-to-Own, a furniture rental and sales company, records annual depreciation expense on December 31 each year. Which account will Carrier credit when they record their depreciation on December 31st?

 Equipment

 Depreciation Expense

 Accumulated Depreciation

 Repairs and Maintenance Expense

 The following events pertain to Bass Masters Corp

 May 1 Bass Masters purchased materials of $3,000 on account.

 May 5 The materials were shipped to Bass Masters.

 May 8 Bass Masters used these materials for a one-time event.

 May 9 Bass Masters paid $3,000 cash for the materials purchased on May 1.

 Using accrual accounting, on which date should Bass Masters Corp. record an expense?

  May 8.

  May 1.

  May 5.

 May 9.

 On July 1, 2019, Perry Corp. paid $12,000 to Trust Corp for insurance covering 24 months from July 1, 2019 through June 30, 2021. What adjusting entry should Perry Co. record on December 31, 2019?

 DR: Prepaid Insurance 12,000 CR: Cash 12,000

 DR: Insurance Expense 3,000 CR: Cash 3,000

 DR: Insurance Expense 6,000 CR: Prepaid Insurance 6,000

 DR: Insurance Expense 3,000 CR: Prepaid Insurance 3,000

Answer 1

1.
Answer is d. credit assets; credit revenues

2.
Answer is a. DR Accounts Receivable $14000, CR Service Revenue $14000

3.
Answer is d. Liabilities decrease, stockholder's equity increases

4.
Answer is c. DR Buildings 140000, CR Notes Payable 140000

5.
Answer is c. Expenses, assets and dividends, as normal balances of these accounts is debit

6.
Answer is a. DR Prepaid Rent 24000, CR Cash 24000

7.
Answer is b. The company records liability on October 15

8.
Answer is c. Accumulated Depreciation

9
Answer is a. May 8

10.
Answer is d. DR Insurance expense 3000, CR Prepaid Insurance 3000

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