10 Questions
What is the correct journal entry for the transaction 'Invested $5,000 to open her law practice'?
Debit Cash $5,000, Credit Jerusalem, Capital $5,000
What is the correct journal entry for the transaction 'Received $2,000 in fees earned during the month'?
Debit Cash $2,000, Credit Fees Earned $2,000
What is the correct journal entry for the transaction 'Paid three months rent, $900'?
Debit Rent Expense $900, Credit Cash $900
What is the correct journal entry for the transaction 'Paid Utilities Expense, $150'?
Debit Utilities Expense $150, Credit Cash $150
What is the correct journal entry for the transaction 'Withdrew $500 for personal use'?
Debit Jerusalem, Drawing $500, Credit Cash $500
Explain the journal entry for the transaction 'Purchased Equipment on account $2000'.
The journal entry for this transaction would be: Debit Equipment (105) $2000 and Credit Accounts Payable (201) $2000.
What is the correct journal entry for the transaction 'Bought office supplies on account, $500'?
The correct journal entry for this transaction is: Debit Office Supplies (102) $500 and Credit Accounts Payable (201) $500.
How would you journalize the transaction 'Performed service and earned cash $8,000'?
The journal entry for this transaction is: Debit Cash (101) $8000 and Credit Fees Earned (401) $8000.
Explain the journal entry for the transaction 'Paid monthly salary of 1,500'.
The journal entry for this transaction would be: Debit Salaries Expense (501) $1500 and Credit Cash (101) $1500.
What is the correct journal entry for the transaction 'Paid miscellaneous expense of $200'?
The correct journal entry for this transaction is: Debit Miscellaneous Expense (509) $200 and Credit Cash (101) $200.
Study Notes
Journal Entries for Business Transactions
- Invested $5,000 to open her law practice: Debit Cash $5,000, Credit Owner's Capital $5,000
- Received $2,000 in fees earned during the month: Debit Cash $2,000, Credit Service Revenue $2,000
- Paid three months rent, $900: Debit Rent Expense $900, Credit Cash $900
- Paid Utilities Expense, $150: Debit Utilities Expense $150, Credit Cash $150
- Withdrew $500 for personal use: Debit Owner's Capital $500, Credit Cash $500
Purchases on Account
- Purchased Equipment on account $2000: Debit Equipment $2000, Credit Accounts Payable $2000
- Bought office supplies on account, $500: Debit Office Supplies $500, Credit Accounts Payable $500
Revenue Recognition
- Performed service and earned cash $8,000: Debit Cash $8,000, Credit Service Revenue $8,000
Employee Compensation
- Paid monthly salary of $1,500: Debit Salaries Expense $1,500, Credit Cash $1,500
Miscellaneous Expenses
- Paid miscellaneous expense of $200: Debit Miscellaneous Expense $200, Credit Cash $200
Test your knowledge of accounting transactions with this quiz based on a set of transactions at a law firm. Practice journalizing, posting, and preparation of trial balance while using a specified Chart of Accounts.
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