Reference no: EM132907513

Problem 1: A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded?

A) Cash is credited and Notes Payable is debited for $1,400.

B) Notes Payable is credited and Cash is debited for $1,400.

C) Cash is credited and Financing Expense is debited for $1,400.

D) Cash is debited and Financing Revenue is credited for $1,400.

Problem 2: A business purchases equipment by paying $9,087 in cash and issuing a note payable of $13,264. Which of the following occurs?

A) Cash is credited for $9,087, Equipment is credited for $22,351, and Notes Payable is debited for $13,264.

B) Cash is credited for $9,087, Equipment is debited for $22,351, and Notes Payable is credited for $13,264.

C) Cash is debited for $9,087, Equipment is debited for $13,264,and Notes Payable is credited for $22,351.

D) Cash is debited for $9,087, Equipment is credited for $13,264, and Notes Payable is debited for $4,177.

Problem 3: The following transactions for the month of March have been journalized and posted to the proper accounts of a sole proprietorship.

Mar. 1 The business received $9,000 cash from the owner of the business, Morris Tharps. The business gave capital to Morris T-harps.

Mar. 2 Paid the first month's rent of $900.

Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $7,000.

Mar. 4 Purchased office supplies for $730 cash.

Mar. 5 Billed a client for $10,000 of design services completed.

Mar. 6 Received $7,900 on account for the services previously recorded.

What is the balance in Cash on March 6?

A) $13,170

B) $12,270

C) $15,270

D) $13,900