Reference no: EM132538962

Question 1: A company bills customers for services provided. The company records this transaction with a:

Option 1: Debit to Cash

Option 2: Debit to Retained Earnings

Option 3: Credit to Accounts Payable

Option 4: Credit to Service Revenue

Question 2: Callahan Corporation provides services to customers on account, $900. How would this transaction be recorded?

Option 1: Debit Accounts Payable $900, credit Service Revenue $900

Option 2: Debit Service Revenue $900, credit Accounts Payable $900

Option 3: Debit Accounts Receivable $900, credit Service Revenue $900

Option 4: Debit Service Revenue $900, credit Accounts Receivable $900

Question 3: A company pays cash for utilities. The company records this transaction with a:

Option 1: Credit to Accounts Payable

Option 2: Credit to Accounts Receivable

Option 3: Credit to Cash

Option 4: Credit to Retained Earnings

Question 4: Livingston Company pays utilities of $2,500 in cash. How would this transaction be recorded?

Option 1: Debit Accounts Payable $2,500, credit Cash $2,500

Option 2: Debit Cash $2,500, credit Retained Earnings $2,500

Option 3: Debit Cash $2,500, credit Utilities Expense $2,500

Option 4: Debit Utilities Expense $2,500, credit Cash $2,500

Question 5: A company prepares the following journal entry. In posting this transaction to T-accounts, which of the following will be required?

Date Account Title Debit Credit

June 1 Cash 28,000

Notes Payable 28,000

Multiple Choice

Option 1: Post $28,000 on the right side of the Cash T-account

Option 2: Post $28,000 on the left side of the Notes Payable T-account

Option 3: Post $28,000 on the left side of the Cash T-account

Option 4: None of these.

Question 6: A company prepares the following journal entry. In posting this transaction to T-accounts, which of the following will be required?

Date Account Title Debit Credit July 1 Supplies 2,000 . Cash 2,000

Multiple Choice

Option 1: Post $2,000 on the left side of the Cash T-account

Option 2: Post $2,000 on the left side of the Supplies T-account

Option 3: Post $2,000 on the right side of the Supplies T-account

Option 4: None of these.