Chapter 2 Recording Business Transactions

21) A business makes a cash payment of $12,000 to a supplier, for supplies purchased two weeks earlier. Which of the following accounts will be debited?

A) Cash

B) Accounts Payable

C) Bank

D) Accounts Receivable

22) A business makes a cash payment of $12,000 to a creditor. Which of the following accounts will be credited?

A) Cash

B) Accounts payable

C) Bank

D) Accounts receivable

23) A business renders services to a customer for $26,000 on account. Which of the following accounts will be debited?

A) Cash

B) Accounts Receivable

C) Service Revenue

D) Bank

24) A business renders services to a customer for $26,000 on account. Which of the following accounts will be credited?

A) Cash

B) Accounts Receivable

C) Service Revenue

D) Bank

25) A business renders services for $26,000 and collects cash from the customer. Which of the following accounts will be debited?

A) Cash

B) Accounts Receivable

C) Service Revenue

D) Bank

26) Beetles Inc. recorded the following journal entry on March 2, 2014:

Cash	5,000
Unearned Revenue		5,000

From the journal entry above, identify the transaction on March 2, 2014.

A) Beetles purchased goods worth $5,000 and signed a one-year note for the same.

B) Beetles sold goods for $5,000 cash.

C) Beetles received $5,000 for services to be performed in a later period.

D) Beetles paid $5,000 for services to be received at a later date.

27) A business pays $500 cash for office supplies. Which of the following accounts will be debited?

A) Cash

B) Accounts Payable

C) Office Supplies

D) Utilities Expense

28) A business pays $500 cash for office supplies. Which of the following accounts will be credited?

A) Cash

B) Accounts Payable

C) Office Supplies

D) Utilities Expense

29) A business buys $500 of Office Supplies on account. Which of the following accounts is debited?

A) Cash

B) Accounts Payable

C) Office Supplies

D) Utilities Expense

30) A business buys $500 of Office Supplies on account. Which of the following accounts is credited?

A) Cash

B) Accounts payable

C) Office Supplies

D) Service revenue