Reference no: EM132479679

A company bills customers for services provided. The company records this transaction with a:

1. Debit to Cash
2. Debit to Retained Earnings
3. Credit to Accounts Payable
4. Credit to Service Revenue

Callahan Corporation provides services to customers on account, $900. How would this transaction be recorded?

1. Debit Accounts Payable $900, credit Service Revenue $900
2. Debit Service Revenue $900, credit Accounts Payable $900
3. Debit Accounts Receivable $900, credit Service Revenue $900
4. Debit Service Revenue $900, credit Accounts Receivable $900

A company pays cash for utilities. The company records this transaction with a:

1. Credit to Accounts Payable
2. Credit to Accounts Receivable
3. Credit to Cash
4. Credit to Retained Earnings

Livingston Company pays utilities of $2,500 in cash. How would this transaction be recorded?

1. Debit Accounts Payable $2,500, credit Cash $2,500
2. Debit Cash $2,500, credit Retained Earnings $2,500
3. Debit Cash $2,500, credit Utilities Expense $2,500
4. Debit Utilities Expense $2,500, credit Cash $2,500

Question 1: In a journal entry, there are two amount columns: the left-hand column is for debits, and the right-hand column is for credits.

True or False

Question 2: In a journal entry, the account to be credited is listed on the first line.

True or False

Question 3: In preparing journal entries, it is acceptable for the amount of total debits to be higher than the amount of total credits.

True or False