34) Which of the following journal entries would be recorded if a business renders service and receives cash of $400 from the customer?
A)
Service revenue
|
400
|
|
Cash
|
|
400
|
B)
Service revenue
|
400
|
|
Accounts payable
|
|
400
|
C)
Cash
|
400
|
|
Service revenue
|
|
400
|
D)
Service revenue
|
400
|
|
Accounts receivable
|
|
400
|
35) Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $600 "on account" (the business had purchased supplies on account in the previous month)?
A)
Cash
|
600
|
|
Accounts payable
|
|
600
|
B)
Accounts payable
|
600
|
|
Cash
|
|
600
|
C)
D)
Accounts payable
|
600
|
|
Supplies
|
|
600
|
36) Which of the following journal entries would be recorded if Jane Brown formed a corporation, and then deposited cash of $6,000 into the corporation's bank account?
A)
Cash
|
6,000
|
|
Common stock
|
|
6,000
|
B)
Accounts payable
|
6,000
|
|
Cash
|
|
6,000
|
C)
Common stock
|
6,000
|
|
Cash
|
|
6,000
|
D)
Common stock
|
6,000
|
|
Accounts payable
|
|
6,000
|
37) Which of the following journal entries would be recorded if a business purchased equipment for $3,000 cash?
A)
B)
C)
Cash
|
3,000
|
|
Accounts payable
|
|
3,000
|
D)
Equipment
|
3,000
|
|
Accounts payable
|
|
3,000
|
38) Which of the following journal entries would be recorded if a business collects $1,000 cash on account from a customer for services performed at an earlier date?
A)
Cash
|
1,000
|
|
Service revenue
|
|
1,000
|
B)
Accounts receivable
|
1,000
|
|
Service revenue
|
|
1,000
|
C)
Cash
|
1,000
|
|
Accounts receivable
|
|
1,000
|
D)
Service revenue
|
1,000
|
|
Accounts receivable
|
|
1,000
|
39) Which of the following journal entries would be recorded if a business purchases equipment for $2,500 cash and supplies for $450 cash?
A)
Equipment
|
2,950
|
|
Cash
|
|
2,500
|
Supplies
|
|
450
|
B)
Cash
|
2,500
|
|
Equipment
|
450
|
|
Accounts receivable
|
|
2,950
|
C)
Cash
|
2,950
|
|
Equipment
|
|
2,500
|
Supplies
|
|
450
|
D)
Equipment
|
2,500
|
|
Supplies
|
450
|
|
Cash
|
|
2,950
|
40) A business makes a payment of $1,200 on a note payable, consisting of a $200 interest payment and a $1,000 principal payment. Which of the following journal entries would be recorded?
A)
Notes payable
|
1,000
|
|
Interest expense
|
200
|
|
Cash
|
|
1,200
|
B)
Cash
|
1,200
|
|
Notes payable
|
|
1,000
|
Interest expense
|
|
200
|
C)
Notes payable
|
1,200
|
|
Cash
|
|
1,000
|
Interest expense
|
|
200
|
D)
Cash
|
1,000
|
|
Notes payable
|
|
1,200
|
Interest expense
|
|
200
|
41) A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000. Which of the following journal entries would be recorded?
A)
Equipment
|
20,000
|
|
Notes payable
|
|
12,000
|
Cash
|
|
8,000
|
B)
Cash
|
8,000
|
|
Notes payable
|
12,000
|
|
Equipment
|
|
20,000
|
C)
Cash
|
8,000
|
|
Notes payable
|
4,000
|
|
Equipment
|
|
12,000
|
D)
Equipment
|
8,000
|
|
Notes payable
|
4,000
|
|
Cash
|
|
12,000
|
42) The following transactions have been journalized and posted to the proper accounts.
1. Mark Call invested $7,000 cash in his new design services corporation in exchange for stock.
2. The corporation paid the first month's rent of $700.
3. The corporation purchased equipment by paying $2,000 cash and executing a note payable for $4,500.
4. The corporation purchased supplies for $850 cash.
5. The corporation billed a client for $4,000 of design services completed.
6. The corporation received $3,000 of the account for the completed services.
What is the balance in Cash?
A) $7,850
B) $6,450
C) $8,450
D) $8,150
43) Which of the following journal entries would be recorded if a business purchased $200 of supplies by paying cash?
A)
B)
Accounts payable
|
200
|
|
Supplies
|
|
200
|
C)
D)
Supplies
|
200
|
|
Accounts payable
|
|
200
|