Journal Entries Quiz: Test Your Accounting Skills

Questions and Answers

What is the general journal entry to record Edison's utilities bill of $520?

Debit utilities expense 520

Which journal entry will VC Consulting make for Victor Cruz's contribution of $78,000 in cash and $146,000 in land?

D cash, C land, D common stock

D cash, D land, C common stock (correct)

C cash, D land, C common stock

D land, C cash, C common stock

What journal entry will Green Cleaning make to record the purchase of $530 of office supplies on credit?

C office supplies, D accounts payable

D office supplies, C accounts payable (correct)

C accounts payable, D cash

D accounts payable, C office supplies

What journal entry will Alicia Tax Services make to record the payment of $680 to settle an account payable?

D accounts payable, C cash Signup and view all the answers

What journal entry will a law firm make to record billing a client $3,800 for work performed?

D accounts receivable, C legal fees revenue Signup and view all the answers

What journal entry will a law firm make when collecting $2,200 on account?

D cash, C accounts receivable Signup and view all the answers

What journal entry will a law firm make to record collecting $3,200 in advance?

D cash, C unearned legal fees revenue Signup and view all the answers

What journal entry will Specter Consulting make after purchasing $8,400 of supplies with cash?

D supplies, C cash Signup and view all the answers

What is the general journal entry that Jose Consulting will make for paying $600 cash for utilities?

D utilities expense, C cash Signup and view all the answers

What journal entry will Ted Catering make for receiving $980 cash in advance for services to be performed in three months?

D cash, C unearned catering revenue Signup and view all the answers

What journal entry will Adriana Graphic Design make to record receiving $1,900 from a previous client?

D cash, C accounts receivable Signup and view all the answers

What journal entry will Russell Co. make upon receiving a $580 utility bill that is not due until next month?

D utilities expense, C accounts payable Signup and view all the answers

What journal entry will Silvia's Studio make for providing $190 of dance instruction and receiving $120 for rent in cash?

D cash, C rental revenue, C instruction revenue Signup and view all the answers

What journal entry will Innovation Consulting make for Matthew Martin's investment of $54,000 cash?

D cash, C common stock Signup and view all the answers

What is GreenLawn's journal entry for a customer paying $79,000 in advance for services?

D cash, C unearned revenue Signup and view all the answers

What will be the balance in the Cash account at the beginning of May if at the end it is $5,400 with transactions of $12,600 debited and $11,900 credited?

4,700 debit balance Signup and view all the answers

What is the amount of credit sales for May given the Accounts Receivable balance changes?

51,400 Signup and view all the answers

What was the February 1 beginning cash balance if cash receipts were $7,600 and disbursements were $8,800 with an ending balance of $2,000?

3,200 Signup and view all the answers

What was the total revenue for July based on the transactions completed?

1,675 Signup and view all the answers

What is the balance of the cash account after Marco's transactions?

45,200 Signup and view all the answers

What will be the end balance in the accounts receivable account for Sorrel Co. after transactions during January?

65,900 Signup and view all the answers

What is the accounts payable balance at the end of March for Harley's Computer Services?

87,500 Signup and view all the answers

What was the change in total equity during the current year for Jimmy's Sandwich Company?

19,500 Signup and view all the answers

What is the balance in the cash account at the end of January for Apple Photography?

11,455 Signup and view all the answers

What will be the total stockholders' equity reported for Apple Photography after the January transactions?

61,595 Signup and view all the answers

Calculate the debt ratio for Jennings Co.

27.2% Signup and view all the answers

Calculate the debt ratio for Sanders Co.

27.1% Signup and view all the answers

What was James Co.'s debt ratio at year-end?

73.0% Signup and view all the answers

What is Snell Co.'s debt ratio at the end of the year?

65% Signup and view all the answers

Calculate the reported net income for Centurion Co. using provided account balances.

6,760 Signup and view all the answers

What is the total stockholders' equity reported on JMP Consulting's balance sheet?

35,950 Signup and view all the answers

What amount is the Sales account overstated by due to a credit posting error?

288 overstated Signup and view all the answers

What could cause a trial balance to not balance according to the given situation?

The balance of 5,680 in the office equipment account being entered on the trial balance as a debit of 580 Signup and view all the answers

Identify the item that would cause the trial balance to not balance.

The cash payment of a $1,230 account payable was posted as a debit to Accounts Payable and a debit to Cash for $1,230. Signup and view all the answers

What is the effect on the trial balance of incorrectly posting a credit purchase of a new oven?

The total of the Debit column of the trial balance will exceed the total of the Credit column by $13,000. Signup and view all the answers

Identify which error will cause the trial balance to be out of balance.

A $190 cash receipt from a customer in payment of her account posted as a $190 debit to Cash and a $19 credit to Accounts Receivable. Signup and view all the answers

What amounts are the accounts understated or overstated due to a credit mistake to Supplies?

Supplies, overstated $220; Fees Earned, overstated $220. Signup and view all the answers

What is the net income for Jackson's Repairs based on March transactions?

19,900 Signup and view all the answers

What will be the total amount of stockholders' equity for Hill's Repairs at the end of March?

168,100 Signup and view all the answers

What is an incorrect way to complete the recording of a transaction involving an asset and a liability?

Debit another asset account for $2,700. Signup and view all the answers

Study Notes

General Journal Entries

Debit utilities expense $520 for Edison Consulting's utilities bill
For VC Consulting, debit cash $78,000 and land $146,000, credit common stock for startup contributions
Green Cleaning's purchase of $530 office supplies on credit recorded as debit office supplies and credit accounts payable
When settling an account payable, Alicia Tax Services records debit accounts payable and credit cash for $680
A law firm's billing of $3,800 to a client results in debit accounts receivable and credit legal fees revenue
For collections from previous work, the law firm debits cash and credits accounts receivable $2,200
Receiving $3,200 in advance for future legal work includes debiting cash and crediting unearned legal fees revenue
Specter Consulting bought $8,400 in supplies and paid cash, recording debit supplies and credit cash
Jose Consulting's payment of $600 for utilities includes debiting utilities expense and crediting cash
Ted Catering receives $980 cash in advance recorded as debit cash and credit unearned catering revenue

Account Balances and Calculations

Adriana Graphic Design's cash collection from a previous bill results in debit cash and credit accounts receivable for $1,900
Russell Co. records receipt of a $580 utility bill with a debit to utilities expense and credit accounts payable
Silvia's Studio recognizes a total of $310 cash for services provided, debiting cash and crediting rental revenue and instruction revenue
Innovation Consulting records cash investment of $54,000 from its owner as debit cash and credit common stock
GreenLawn Co.’s advance payment of $79,000 for landscaping services includes crediting unearned revenue
Cash account balance for Tesla at the end of May is $5,400 after total debits of $12,600 and credits of $11,900
Gomez Services reports total credit sales of $51,400 in May, after adjusting accounts receivable balances
Rubio Services starts with a February 1 cash balance of $3,200 after cash receipts and disbursements analysis
Revenue for July for a business includes total of $1,675 from cash and credit transactions
Marco Nelson's cash balance after transactions totals $45,200 following investments and sales activity

Financial Ratios and Equity

Sorrel Co.’s accounts receivable balance at month-end is calculated at $65,900 after adjustments
Harley's Computer Services calculates its accounts payable end balance at $87,500 after purchases and payments
Jimmy's Sandwich Company’s total stockholders' equity change for the year is $19,500, factoring in revenues, expenses, and dividends
Andrea Apple’s cash account ends at $11,455 after multiple transactions in January
Total stockholders' equity at month-end for a different Apple Photography scenario totals $61,595

Debt Ratios

Jennings Co. calculated a debt ratio of 27.2% using total assets and liabilities
Sanders Co. has a debt ratio of 27.1% calculated with its financial totals
James Co.’s debt ratio is reported at 73.0% based on total liabilities and equity data
Snell Co.’s end-of-year debt ratio is determined at 65% despite significant revenue and expense activities

Errors in Accounts

A credit error of $32 recorded as $320 in sales indicates an overstatement of $288
A trial balance imbalance caused by misrecorded equipment can create a discrepancy in reported values
A cash payment error that incorrectly debits accounts payable and cash leads to an unbalanced trial
Incorrect posting of kitchen equipment transactions results in excess totals in the Debits column by $13,000
Receipt posting errors can result in understatements or overstatements affecting balance accuracy

Net Income Calculations

Jackson's Repairs reports a net income of $19,900 after detailed accounting of revenue and expenses for March
Hill's Repairs corroborates total stockholders’ equity of $168,100 at month-end post various operational transactions

Completing Transactions

An asset and liability account adjustment needs balancing, necessitating proper debit and credit application for full recording accuracy.

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Description

Test your knowledge of general journal entries with this quiz that covers various scenarios such as expenses, income, and asset transactions. Each question will challenge your understanding of accounting principles and the correct recording methods for different business activities.

General Journal Entries Quiz