Reference no: EM132478837

Question 1: Kelly Corporation borrows $120,000 from First Community Bank. How would this transaction be recorded?

1. Debit Accounts Receivable $120,000, credit Notes Payable $120,000
2. Debit Notes Payable $120,000, credit Accounts Receivable $120,000
3. Debit Cash $120,000, credit Notes Payable $120,000
4. Debit Notes Payable $120,000, credit Cash $120,000

Question 2: A company purchases supplies for cash. The company records this transaction with a:

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

Question 3: Timmons Corporation purchases office supplies for $350 cash. How would this transaction be recorded?

1. Debit Inventory $350, credit Cash $350
2. Debit Cash $350, credit Inventory $350
3. Debit Supplies $350, credit Cash $350
4. Debit Cash $350, credit Supplies $350

Question 4: Indicate how to increase and decrease each account listed below by selecting debit or credit.

1. Increasing / Decreasing
2. Retained Earning
3. Revenue
4. Expenses
5. Dividends