When cash payment is made to a supplier of $600 on account, it has the following effects:
- Current liabilities decrease in the form of accounts payable.
- Current assets decrease in the form of cash.
Decrease in liabilities is debited and hence accounts payable will be debited.
Decrease in assets is credited and hence cash will be credited.
Correct option is B.
Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.
Thanks
Cash C= 10,000,000 20000 8) Which of the following journal entries would be recorded if a...
Part 3: Journal Entries 20 Points Prepare Journal entries of the following transactions. A business is started by receiving $5,000 cash from the owner A business purchases land for $100,000 cash. A business purchases supplies for $200 on account. A business renders services to its cystomer and collects $900 cash. A business renders services to its customer for $350 on account. A business pays salary expense of $4,000 in cash. In a previous month, the business purchased supplies for $800...
A sole proprietorship has the following transactions: The business received $20,000 cash from the owner in exchange for capital. The business purchases $600 of office supplies on account. The business purchases $3,000 of furniture on account. The business performs services to various clients totaling $11,000 on account. The business pays out $3,000 for salaries expense and $4,500 for rent expense. The business pays $600 to a supplier for the office supplies purchased earlier. The business collects $2,000 from one of...
red The unadjusted trial balance of XY Ltd shows a $2,200 balance for the office supplies account. At the end of the period, the office manager determines that the value of supplies on hand is $800. Which of the following is the required adjusting entry? on Select one: A. Supplies Expense Supplies Payable 800 800 B. Supplies Expense Office Supplies 1,400 1,400 800 Supplies Expense Office Supplies 800 D Supplies Expense Supplies Payable 1,400 1,400 Which of the following journal...
Prepare journal entries for the chapter two illustrative
problem on page 84. Only prepare journal entries.
utive Problem J. F. Outz, M.D., has been practicing as a cardiologist for three years. During April 2018, Outz completed the following transactions in her practice of cardiology: Apr. 1. Paid office rent for April, $800. 3. Purchased equipment on account, $2,100. 5. Received cash on account from patients, $3,150. 8. Purchased X-ray film and other supplies on account, $245. 9. One of the...
accounting journal entries for each transactions no journal entry may be recorded company had following happen in October October 1- Paid 300 for rent October 3- Purchased fuel costing $350 for next trip October 5- Received $300 from customer to ship items next month October 6- Customer paid $600 for a service October 10 - Paid $100 for advertisement in local paper to run later in month October 12 - Paid worker $2,000 for wages for last month ( recorded...
P4-39B Comple ting the accounting cycle from journal entries to post-closing optional worksheet 8. Calculate the 1, 2, 3, 4, 5 trial balance with an On December 1, Curt Wilson began an auto repair shop, Wilson's Quality Automotive. 572,080 The following transactions occurred during December: Dec. 1 Wilson contributed $63,000 cash to the business in exchange for capital. 1 Purchased $14,400 of equipment paying cash. OI 1 Paid $3,600 for a twelve-month insurance policy starting on December 1. 9 Paid...
the first month of P2-32A P2-31A Journalizing transactions, posting journal entries to four-colu accounts, and preparing a trial balance Terrence Murphy opened a law office on January 1, 2018. During the first m operations, the business completed the following transactions: 0,160 Jan. 1 Murphy contributed $78,000 cash to the business, Terrence Muro Attorney. The business gave capital to Murphy. 3 Purchased office supplies. $600, and furniture, $1,700, on account 4 Performed legal services for a client and received $1,000 cash....
Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the purchases journal. May 1 Purchased $20,100 of merchandise on credit from Krause, Inc., terms n/30. 8 Sold merchandise costing $1,300 to G. Seles for $3,500 on credit subject to a $50 sales discount if paid by the end of the month. 14 Purchased $440 of store supplies from Chang Company on credit, terms n/30....
1) If a two-column (all purpose) general journal, a purchases journal, and a cash payments journal are used, indicate the journal in which each of the following transactions should be recorded: a. Payment of rent b. Purchase of supplies on account C. Purchase of computer on account d. Purchase of supplies for cash e. Advance payment of a one-year fire insurance policey on the office f. Adjustment to record accrued salaries at the end of the period g. Adjustment to...
MONTHEND JOURNAL ENTRIES: 1) Prepare the following monthend journal entries including explanations for Dec 31. 2) Post journal entries to the T-ACCOUNTS. 3) Then, click on the WORKSHEET tab, and enter the T-account balances in the Adjustments column. Trans# (a) Office Supplies on hand at December 31 is $1,200. (b) Depreciation...