Question

Question 5

1. The entry to record the cost of merchandise inventory sold involves a

   		debit to Merchandise Inventory and a credit to Accounts Receivable.
   		debit to Cost of Goods Sold and a credit to Sales Revenue.
   		debit to Merchandise Inventory and a credit to Sales Revenue.
   		debit to Merchandise Inventory and a credit to Cost of Goods Sold.
   		debit to Cost of Goods Sold and a credit to Merchandise Inventory.

1 points

Question 6

1. Accumulated depreciation is classified as a(n)

   		liability account.
   		contra asset account.
   		contra liability account.
   		asset account.
   		equity account.

1 points

Question 7

1. Which of the following accounts are expected to have a credit balance?
   1. Cash
   2. Salary Expense
   3. Retained Earnings
   4. Accumulated Depreciation
   5. Sales
   6. Prepaid Rent
   7. Accounts Payable

   		Cash, Retained Earnings, Accumulated Depreciation, Prepaid Rent, Accounts Payable
   		Cash, Salary Expense, Prepaid Rent
   		Cash, Retained Earnings, Sales
   		Retained Earnings, Accumulated Depreciation, Sales, Accounts Payable
   		Salary Expense, Accounts Payable, Accumulated Depreciation

1 points

Question 8

1. Given the following balances, what would the total debits in the trial balance equal?
   1. Equipment $52,000
   2. Accounts Payable 1,000
   3. Sales 51,000
   4. Accumulated Depreciation 3,000
   5. Accounts Receivable 4,000
   6. Retained Earnings 13,000
   7. Salary Expense 4,000
   8. Cash 12,000
   9. Paid-in Capital 10,000
   10. Cost of Goods Sold 25,000

   		$ 97,000
   		$103,000
   		$ 52,000
   		$107,000
   		$101,000

1 points

Question 9

1. Browse Books, Inc., received and paid its utility bill of $250. As the accountant, you would tell the bookkeeper to

   		debit Cash and credit Utility Expense for $250.
   		debit Cash and credit Utility Payable for $250.
   		debit Utility Receivable and credit Cash for $250.
   		debit Utility Expense and credit Cash for $250.
   		debit Cash and credit Retained Earnings for $250.

1 points

Question 10

1. A company began operations and purchased $5,000 of supplies. By year-end, $3,200 were still on hand. The year-end entry would include a

   		credit to Supplies Expense for $1,800.
   		credit to Supplies Expense for $3,200.
   		debit to Supplies Expense for $1,800.
   		debit to Supplies Expense for $3,200.
   		debit to Supplies for $5,000.

Answer 1

1) Solution: debit to Cost of Goods Sold and a credit to Merchandise Inventory

Explanation: Cost of Goods sold will be debited and a credited with Merchandise Inventory

　

2) Solution: contra asset

Explanation: Accumulated depreciation is classified to be contra asset

　

3) Solution: Retained Earnings, Accumulated Depreciation, Sales, Accounts Payable

Explanation: As a liability account, Accounts Payable will have nornal credit balance

cash debit

　

4) Retained Earnings, Accumulated Depreciation, Sales, Accounts Payable

Solution:

Explanation:

Equipment	52,000
Accounts Receivable	4,000
Salary Expense	4,000
Cash	12,000
COGS	25,000
	97,000

　

As per policy we have to answer first four questions