Finding true journal entry

Assignment Help Accounting Basics

Reference no: EM1310462

1. Green Systems sold and delivered modems to Blue Computers for $660,000 to be paid by Blue in three equal instalments over the next three months. The journal entry made by Blue Computers to record the last of the three instalment payments will include:

A) A debit of $220,000 to Modem Expense

B) A debit of $220,000 to Accounts Receivable.

C) A debit of $220,000 to Accounts Payable.

D) A debit of $220,000 to Cash.

2. Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment makes a partial payment of $7,600 on this liability, which of following is true about the journal entry made by Master to record this transaction?

A) The Cash Paid Out account is debited $7,600.

B) The liability account Accounts Payable is credited $9,800.

C) The Accounts Payable account is debited $7,600.

D) The Cash account is debited $7,600.

3. Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment makes a partial payment of $7,600 on this liability, which of following is true about the journal entry made by Master to record this transaction?

A) The Cash Paid Out account is debited $7,600

B) The liability account Accounts Payable is credited $9,800

C) The Cash account is debited $7,600

D) The Accounts Payable account is debited $7,600

Reference no: EM1310462

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