Question :
88. A debit used to record which of the following: A. A decrease : 1257780
88. A debit is used to record which of the following: A. A decrease in an asset account.B. A decrease in an expense account.C. An increase in a revenue account.D. An increase in acontributed capital account.E. An increase in the dividends account.
89. A credit entry: A. Increases asset and expense accounts, and decreases liability,stockholders’ equity, and revenue accounts.B. Is always a decrease in an account.C. Decreases asset and expense accounts, and increases liability, stockholders’ equity, and revenue accounts.D. Is recorded on the left side of a T-account.E. Is always an increase in an account.
90. A double-entry accounting system is an accounting system: A. That records each transaction twice.B. That records the effects of transactions and other events in at least two accounts with equal debits and credits.C. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.D. That may only be used if T-accounts are used.E. That insures that errors never occur.
91. Ralph Pine Consulting received its telephone bill in the amount of $300, and immediately paid it. Pine’s general journal entry to record this transaction will include a A. Debit to Telephone Expense for $300.B. Credit to Accounts Payable for $300.C. Debit to Cash for $300.D. Credit to Telephone Expense for $300.E. Debit to Accounts Payable for $300.
92. GolddiggerServices, Inc. provides services to clients. On May 1, a client prepaid GolddiggerServices $60,000 for 6-months services in advance. GolddiggerServices’ general journal entry to record this transaction will include a: A. Debit to Unearned Management Fees for $60,000.B. Credit to Management Fees Earned for $60,000.C. Credit to Cash for $60,000.D. Credit to Unearned Management Fees for $60,000.E. Debit to Management Fees Earned for $60,000.
93. Willow Rentals purchased office supplies on credit. The general journal entry made by Willow Rentals will include a: A. Debit to Accounts Payable.B. Debit to Accounts Receivable.C. Credit to Cash.D. Credit to Accounts Payable.E. Credit to Common Stock.
94. An asset created by prepayment of an insurance expense is: A. Recorded as a debit to Unearned Revenue.B. Recorded as a debit to Prepaid Insurance.C. Recorded as a credit to Unearned Revenue.D. Recorded as a credit to Prepaid Insurance.E. Not recorded in the accounting records until the insurance period expires.95. RichardRedden contributed $70,000 in cash and land worth $130,000 to open a new business, RR Consulting, Inc. Which of the following general journal entries will RR Consulting, Inc. make to record this transaction?A. Debit Assets $200,000; credit Common Stock, $200,000.B. Debit Cash and Land, $200,000; credit Common Stock, $200,000. C. Debit Cash $70,000; debit Land $130,000; credit Common Stock, $200,000.D. Debi Common Stock, $200,000; credit Cash $70,000, credit Land, $130,000.E. Debit Common Stock, $200,000; credit Assets, $200,000.
96. Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will WileyConsulting make to record this transaction?A.
Accounts Payable
7,000
Supplies
7,000
B
Cash
7,000
Supplies
7,000
C.
Supplies
7,000
Cash
7,000
D.
Supplies
7,000
Accounts Payable
7,000
E.
Supplies Expense
7,000
Accounts Payable
7,000
97. J. Brown Consulting paid $500 cash for utilities for the current month. Given the choices below, determine the general journal entry that J. Brown Consultingwill make to record this transaction.
A.
Utilities Expense
500
Cash
500
B.
Cash
500
Utilities Expense
500
C.
Cash
500
Accounts Payable
500
D.
Utilities Expense
500
Accounts Payable
500
E.
Prepaid Utilities
500
Accounts Payable
500
