Question

Journal Entry please

Circle the best answer to each of the following questions. 1. When a company has performed services for a client but has not yet received payment, it: a. makes no entry until the cash is received. b. debits Accounts Receivable and credits Revenue. c. debits Accounts Payable and credits Revenue. d. debits Cash and credits Accounts Receivable. 2. Brewer Company's controller accidentally erased the 8/1/20 balance for the Cash account. However, she can see that the 8/31/20 Cash balance is $350,000, the company collected $900,000 cash during August 2020 and paid $1,000,000 cash during August 2020. What was the 8/1/20 Cash balance? a. $550,000 b. $350,000 c. $250,000 d. $450,000 3. Which of the following statements is TRUE? a. If a company provides service and bills its client $20,000, the journal entry to record this transaction will cause Total Assets to increase. b. If a company collects a cash deposit of $20,000 for services not yet performed, the journal entry to record this transaction will cause Net Income to increase. If a company pays $20,000 for inventory previously purchased on account, the journal entry to record this payment will cause Total Liabilities to increase. d. None of the above. c. On September 1, Marina, Inc. purchased 5500,000 worth of merchandise inventory on credit. On September 14, Marina paid $500,000 cash related to this purchase. 4. The journal entry to record the September 1 transaction will have the following effect on Marina's financial statements: a. Total Expenses will increase by $500,000. b. Total Liabilities will increase by $500,000 c. Total Assets will decrease by $500,000. d. Total Stockholders' Equity will decrease by $500,000. e. None of the above. 1 5. The journal entry to record the September 14 transaction will have the following effect on Marina's financial statements: a Total Expenses will increase by $500,000 b. Total Liabilities will increase by $500,000 Total Assets will decrease by $500,000 d. Total Stockholders' Equity will decrease by $500,000. C.

Answer 1

Answer 1

When a company has performed services, then Revenue will be credited, and if Cash is not year received by the company, then Accounts Receivables will be debited.

Option b debits Accounts Receivables and credits revenue is the correct option.

Answer 2

Calculation of Cash balance as on 8/1/20

Cash Balance as on 8/31/20                                         350,000

Add: Cash payments during August                         1,000,000

Less: Cash collected in August                                    900,000

Cash Balance as on 8/1/20                                           $450,000

Option d $450,000 is the correct option

Answer 3

Option a is the correct option

As the Journal entry will be done is Accounts Receivables will be debited and Revenue will be credited. Therefore by debiting Accounts Receivables, Total Assets will increase.

As per Chegg Guidelines, I am supposed to answer maximum one Q (Maximum four subparts), in a post. To honor guidelines, I have solved Subparts 1,2 and 3 above.