ACC 211 FALL 2013 EXTRA CREDIT 20 POINTS
DUE ON MONDAY 11/25/2013
Points will be given on correct answers only. For Question 1 & 2 you need to use scantron. Answers question no. 3 on separate paper.
Question 1 Multiple Choice Journal Entries
R. Sparks, an interior decorator, started a business by investing $10,000 cash. The business would record this transaction:
Debit Cash $10,000, Credit Revenue $10,000
Debit Cash $10,000, Credit R. Sparks, Capital $10,000
Credit Cash $10,000, Debit R. Sparks, Capital $10,000
Credit Cash $10,000, Debit Revenue $10,000
R Sparks business purchases a used car for $6,000 cash. The business would record this transaction:
Debit Car expense $6,000, Credit Cash $6,000
Debit Cash 6,000, Credit Car expense $6,000
Debit Assets: car $6,000, Credit Cash $6,000
Debit Cash $6,000, Credit Assets: car $6,000
R. Sparks business purchases a one year liability insurance policy effective immediately for $1,200 cash. The business would record this transaction:
Debit Asset: Prepaid insurance $1,200, Credit cash $1,200
Debit Insurance expense $1,200, Credit cash $1,200
Debit Cash $1,200, Credit Prepaid Insurance $1,200
Debit Cash $1,200, Credit Insurance Expense $1,200
R. Sparks business purchases six months of supplies on account for $550. The business would record this transaction:
Debit Supplies Expense $550, Credit Cash $550
Debit Supplies Expense $550, Credit Accounts Payable $550
Debit Asset: Supplies $550, Credit Cash $550
Debit Asset: Supplies $550, Credit Accounts Payable $550
R. Sparks business billed customers $2,100 for services performed. The business would record this transaction:
Debit Accounts Receivable $2,100, Credit Service Revenues $2,100
Debit Cash $2,100, Credit Service Revenues $2,100
Debit Service Revenues $2,100, Credit Cash $2,100
Debit Service Revenues $2,100, Credit Accounts Receivable $2,100
R. Sparks withdrew from his business $300. The business would record this…