Reference no: EM132695606

Questions -

Q1) Issued an invoice of $1850 to a customer for the interior designing services provided. The journal entry to record the transaction is:

a. debit, cash $1850 and credit, service revenue received in advance $1850.

b. debit, accounts receivable $1850 and credit, service revenue $1850.

c. debit, cash $1850 and credit, service revenue $1850.

d. debit, accounts receivable $1850 and credit, cash $1850.

Q2) The total of the debit side of the accounts payable account is $80000, and the total of the credit side of the accounts payable account is $132,000. What is the accounts payable balance at the end of the period?

a. $52000 debit balance

b. $132000 credit balance.

c. $80000 debit balance.

d. $52000 credit balance

Q3) Paid cash $2000 for a 1-year insurance policy. The journal entry to record the transaction is:

a. debit, cash $2000 and credit, prepaid insurance $2000.

b. debit, prepaid insurance $2000 and credit, cash $2000.

c. debit, insurance expense $2000 and credit, cash $2000.

d. debit, insurance expense $2000 and credit, prepaid insurance $2000.

Q4) The accounts receivable account of the Techno Pty Ltd. had a balance of $120000 at the beginning of May. During May, Techno Pty Ltd. received $20000 cash from the customers invoiced in April. What is the accounts receivable balance at the end of May?

a. $120000 debit balance

b. $140000 debit balance.

c. $20000 credit balance.

d. $100000 debit balance