Accounting Transactions Quiz

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