21) On May 28, B-Z, Inc. received an order from a customer for $300 of services. On June 3, B-Z received an advance payment of $300 for the services. On July 1, B-Z performed all of the services for the customer. Which of the following statements is true?
A) The May 28 journal entry would include a credit to Revenues of $300.
B) The June 3 journal entry would include a credit to Revenues of $300.
C) The July 1 journal entry would include a debit to Cash of $300.
D) The July 1 journal entry would include a debit to Unearned revenues of $300.
22) On May 28, B-Z, Inc. received an order from a customer for $300 of services. On June 3, B-Z received an advance payment of $300 for the services. On July 1, B-Z performed all of the service for the customer. The journal entry to record the revenue earned would be recorded on ________.
A) May 28 and would include a credit to Revenue of $300
B) June 3 and would include a credit to Revenue of $300
C) July 1 and would include a credit to Revenue of $300
D) June 3 and July 1 and each entry would include a credit to Revenue of $150
23) Clean Sweep, Inc performed $300 in services and collected $200 at the time of service. The journal entry to record this transaction would include a ________.
A) credit to Revenue of $200
B) debit to Cash of $300
C) credit to Accounts receivable of $300
D) debit to Accounts receivable of $100
24) On May 3, Doe, Inc. performed $2,000 of services for a client on account. On May 27, Doe, Inc. received $500 of the amount owed. The remaining balance will be collected on June 2. The May 3 journal entry will include ________.
A) a credit to Revenue of $2,000
B) a debit to Cash of $2,000
C) a credit to Accounts receivable of $2,000
D) no entry since no cash was collected
25) On May 3, Doe, Inc. performed $2,000 of services for a client on account. On May 27, Doe, Inc. received $500 of the amount owed. The remaining balance will be collected on June 2. The May 27 journal entry will include a ________.
A) credit to Revenue of $500
B) credit to Accounts receivable of $500
C) credit to Revenue of $2,000
D) credit to Accounts payable of $500
26) Proffitts, Inc. earned $5,500 in revenues of which $300 has not been collected. The journal entry to record this transaction includes ________.
A) a debit to Cash of $5,200 and a credit to Revenues of $5,200
B) debits to Cash of $5,200 and Accounts receivable of $300 and a credit to Revenues of $5,500
C) a debit to Revenues of $5,200 and a credit to Cash of $5,200
D) a debit to Revenues of $5,500 and credits to Cash of $5,200 and Accounts receivable of $300
27) Revs, Inc. collected $5,000 from a customer on May 15 for services to be performed in June. The May 15 journal entry to record this transaction is a debit to ________.
A) Cash of $5,000 and a credit to Revenues of $5,000
B) Cash of $5,000 and a credit to Accounts receivable of $5,000
C) Unearned revenue of $5,000 and a credit to Cash of $5,000
D) Cash of $5,000 and a credit to Unearned revenue of $5,000
28) Twisted Pretzel, Inc. purchased $800 of supplies on account on May 28. The supplies will be used in June. The May 28 journal entry to record this purchase is a debit to ________.
A) Supplies expense of $800 and a credit to Cash of $800
B) Supplies of $800 and a credit to Cash of $800
C) Supplies expense of $800 and a credit to Accounts payable of $800
D) Supplies of $800 and a credit to Accounts payable of $800
29) Journals, Inc. purchased $800 of supplies on account on May 3. On May 28, it paid $500 of the amount it owed for supplies. The May 28 journal entry to record the payment is a debit to ________.
A) Supplies expense of $500 and a credit to Cash of $500
B) Accounts payable of $500 and a credit to Cash of $500
C) Supplies expense of $500 and a credit to Accounts payable of $500
D) Supplies of $500 and a credit to Accounts payable of $500
30) Nadir, Inc. collected $800 of its accounts receivable in May for services performed in April. The journal entry to record this transaction in May is a debit to ________.
A) Cash of $800 and a credit to Accounts receivable of $800
B) Cash of $800 and a credit to Revenue of $800
C) Accounts receivable of $800 and a credit to Revenue of $800
D) Accounts receivable of $800 and a credit to Cash of $800