The proper journal entry to record Ransom Company's billing of clients for $500 of services rendered is:
a. Dr. Cash 500
Cr. Accounts Receivable 500
b. Dr. Accounts Receivable 500
Cr. capital Stock 500
c. Dr. Accounts Receivable 500
Cr. Service Revenue 500
d. Dr. Cash 500
Cr. Service Revenue 500
e. None of these
Answer: C
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ACC101 Chapter 10
- Realistic Company purchased a new truck on January 1, 20X1. The truck cost $20,000, has a four-year life, and a $4,000 residual value. The company has a December 31 year end. If Realistic Company depreciates the truck by the straight-line method, how much should Realistic report as the book value of the truck at the end of 20X3?
- The trial balance:
- Of the following account types, which would be increased by a debit?
- Hefty Company wants to know the effect of different inventory methods on financial statements. Given below is information about beginning inventory and purchases for the current year.
- Inventory accounts should be classified in which section of a balance sheet?
- Flynn Company uses an allowance method for recording uncollectible. At the due date of that account receivable, Flynn determined that $4,000 due from Mitchell will not be collected and should be write off. The entry Flynn should record to write off the Mitchell account is:
- Branz Company had credit sales during the current year which amounted to $700,000. Historically, 3% of credit sales are uncollectible. If Branz uses the allowance method of recording uncollectible accounts, a proper journal entry for the year would be:
- Taylor Company uses the direct write-off method of recording uncollectible accounts receivable. Recently, a customer informed Taylor that he would be unable to pay $300 owed to Taylor. Taylor's proper journal entry to reflect this event would be:
- Adjusting depreciation expense of fixed asset at $8,000. Recording this transaction:
- Provide descriptions for this transaction: Debit unearned revenue $8,000 and credit revenue $8,000
- Provide descriptions for this transaction: Debit unearned revenue $8,000 and credit revenue $,8000
- Provide descriptions for this transaction: Debit Cash $8,000 and credit Unearned revenue $,8000
- Provide descriptions for this transaction: Debit Cash $8,000 and credit Unearned revenue $,8000
- Provide descriptions for this transaction: Debit insurance expense $8,000 and credit Insurance - prepaid expense $,8000
- Provide descriptions for this transaction: Debit inventory $8,000 and credit cash $,8000
- Provide descriptions for this transaction: Debit inventory $8,000 and credit liability $,8000
- Provide descriptions for this transaction: Debit inventory $8,000 and credit liability $,8000
- Provide descriptions for this transaction: Debit office supplies $8,000 and credit liability $,8000
- Provide descriptions for this transaction: Debit office supplies $2,000 and credit liability $,2000
- Provide descriptions for this transaction: Increase cash $1,000 and Increase equity $,1000
- A company might buy a service or product on credit. "On credit" implies that the cash payment will occur:
- A company might provide a service or product on credit. "On credit" implies that the cash payment will occur:
- Moffat Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. What is the entry need to record when Moffat Company bill of a client for $25,000 of contract completed?
- John set up a new business and completed these transactions:
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