Principles of Accounting Chapter 2 Quiz PDF

Principles of Accounting -- Supplemental Instruction CHAPTER 2 QUIZ 1. Childers Service Company provides services to customers totaling \$3,900, for which it billed the customers. How would the transaction be recorded? a. Debit cash \$3,900, credit service revenue \$3,900 b. D...

Principles of Accounting -- Supplemental Instruction CHAPTER 2 QUIZ 1. Childers Service Company provides services to customers totaling \$3,900, for which it billed the customers. How would the transaction be recorded? a. Debit cash \$3,900, credit service revenue \$3,900 b. Debit accounts receivable \$3,900, credit service revenue \$3,900 c. Debit service revenue \$3,900, credit accounts receivable \$3,900 d. Debit accounts receivable \$3,900, credit cash \$3,900 2. A company received a bill for newspaper advertising services received, \$390. The bill will be paid in 10 days. How would the transaction be recorded today? e. Debit accounts payable \$390, credit cash \$390 f. Debit accounts payable \$390, credit advertising expense \$390 g. Debit advertising expense \$390, credit accounts payable \$390 h. Debit advertising expense \$390, credit cash \$390 3. When a company pays utilities of \$1,820 in cash, the transaction is recorded as: i. Debit utilities expense \$1,820, credit utilities payable \$1,820. j. Debit utilities expense \$1,820, credit cash \$1,820. k. Debit cash \$1,820, credit utilities expense \$1,820. l. Debit utilities payable \$1,820, credit cash \$1,820. 4. Summer Leasing received \$10,300 for 24 months rent in advance. How should Summer record this transaction? m. Debit cash; credit unearned revenue n. Debit cash; credit service revenue o. Debit rent expense; credit cash p. Debit prepaid rent; credit rent expense 5. Assume that \$17,400 cash is paid for insurance to cover the next year. The appropriate debit and credit are: q. Debit insurance expense \$17,400, credit prepaid insurance \$17,400. r. Debit prepaid insurance \$17,400, credit insurance expense \$17,400. s. Debit prepaid insurance \$17,400, credit cash \$17,400. t. Debit cash \$17,400, credit prepaid insurance \$17,400. 6. The accounts payable account has a beginning balance of \$10,600 and the company purchased \$45,000 of supplies on account during the month. The ending balance was \$19,500. How much did the company pay to creditors during the month? u. \$74,500 v. \$36,100 w. \$65,600 x. \$46,100 7. When a company pays \$2,100 dividends to its stockholders, the transaction should be recorded as: y. Debit dividends; credit cash. z. Debit dividends; credit accounts payable. a. Debit cash; credit dividends. b. Debit retained earnings; credit dividends. 8. Clement Company paid an account payable related to a previous utility bill of \$950. This transaction should be recorded as follows on the payment date: c. Debit utilities expense \$950, credit cash \$950. d. Debit accounts payable \$950, credit cash \$950. e. Debit cash \$950, credit accounts payable \$950. f. Debit cash \$950, credit utilities expense \$950. 9. On July 7, Saints Inc. received \$9,000 in cash from a customer for services to be provided on October 10. Which of the following describes how the transaction should be recorded on July 7? g. Debit cash \$9,000, credit service revenue \$9,000 h. Debit unearned revenue \$9,000, credit cash \$9,000 i. Debit cash \$9,000, credit unearned revenue \$9,000 j. Debit accounts receivable \$9,000, credit service revenue \$9,000 10. Which of the following would increase assets and increase liabilities? k. Provide services to customers on account. l. Purchase office supplies on account. m. Pay dividends to stockholders. n. Receive a utility bill but do not pay it immediately. Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January: 1\. Issued 10,000 shares of common stock for \$15,000 cash. 2\. Purchased land for \$12,000, signing a note payable for the full amount. 3\. Purchased office equipment for \$1,200 cash. 4\. Received cash of \$14,000 for services provided to customers during the month. 5\. Purchased \$300 of office supplies on account. 6\. Paid employees \$10,000 for their first month\'s salaries. 11. What was the total amount of Gotebo\'s liabilities following these six transactions? o. \$12,300. p. \$27,300. q. \$22,600. r. \$15,500.