Journal Entry : It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm. Rules of Journal Entry: The rules for journal entry are defined by five accounting components, Assets: Increase in asset should be debit and decrease should be credit. Liabilities: Increase in liabilities should be credit and decrease should be debit. Equity: Increase in Equity should be credit and decrease should be debit. Expense: Increase in expense should be debit and decrease should be credit. Revenue: Increase in revenue should be credit and decrease should be debit. To Identify: Correct statement from given statements. Answer: Option b, debit to utility expense for $700 is the correct option.

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Answer 1

Question

Chapter 2, Problem 1MCQ

To determine

Journal Entry:

It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm.

Rules of Journal Entry: The rules for journal entry are defined by five accounting components,

Assets: Increase in asset should be debit and decrease should be credit.

Liabilities: Increase in liabilities should be credit and decrease should be debit.

Equity: Increase in Equity should be credit and decrease should be debit.

Expense: Increase in expense should be debit and decrease should be credit.

Revenue: Increase in revenue should be credit and decrease should be debit.

To Identify: Correct statement from given statements.

Answer:

Option b, debit to utility expense for $700 is the correct option.

Expert Solution & Answer

Explanation of Solution

Option b.

Since, increase in expense reduces equity of a company, it should be debited.

Option a.

Since, increase in expense reduces equity of a company, it should be debited.

Option c.

Since, accounts payable is a short term liability and increase overall liability when it increases, it should be credited.

Option d.

Since, cash is an asset and decrease overall asset when it reduces, it should be credited.

Option e.

Since, there is no effect on the common stock in the given transaction, it should remain same.

Conclusion

Thus, the correct option is b.

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Accurate Value Hardware began in 2019 with a credit balance of $87,000in the allowance for sales returns account. Sales and cash collections from customers during the year were $963,000 and $715,000, respectively. Accurate Value estimates that 7.5% of all sales will be returned. In 2019, customers returned merchandise for a credit of $36,000 to their accounts. Accurate Value's 2019 income statement would report net sales of__.

The financial statements of Sunland Manufacturing Company report net sales of $1277500 and accounts receivable of $71000 and $69000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?

Accounting answer

Answer 2

Question

Chapter 2, Problem 1MCQ

To determine

Journal Entry:

It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm.

Rules of Journal Entry: The rules for journal entry are defined by five accounting components,

Assets: Increase in asset should be debit and decrease should be credit.

Liabilities: Increase in liabilities should be credit and decrease should be debit.

Equity: Increase in Equity should be credit and decrease should be debit.

Expense: Increase in expense should be debit and decrease should be credit.

Revenue: Increase in revenue should be credit and decrease should be debit.

To Identify: Correct statement from given statements.

Answer:

Option b, debit to utility expense for $700 is the correct option.

Expert Solution & Answer

Explanation of Solution

Option b.

Since, increase in expense reduces equity of a company, it should be debited.

Option a.

Since, increase in expense reduces equity of a company, it should be debited.

Option c.

Since, accounts payable is a short term liability and increase overall liability when it increases, it should be credited.

Option d.

Since, cash is an asset and decrease overall asset when it reduces, it should be credited.

Option e.

Since, there is no effect on the common stock in the given transaction, it should remain same.

Conclusion

Thus, the correct option is b.

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Answer 3

Question

Chapter 2, Problem 1MCQ

To determine

Journal Entry:

It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm.

Rules of Journal Entry: The rules for journal entry are defined by five accounting components,

Assets: Increase in asset should be debit and decrease should be credit.

Liabilities: Increase in liabilities should be credit and decrease should be debit.

Equity: Increase in Equity should be credit and decrease should be debit.

Expense: Increase in expense should be debit and decrease should be credit.

Revenue: Increase in revenue should be credit and decrease should be debit.

To Identify: Correct statement from given statements.

Answer:

Option b, debit to utility expense for $700 is the correct option.

Expert Solution & Answer

Explanation of Solution

Option b.

Since, increase in expense reduces equity of a company, it should be debited.

Option a.

Since, increase in expense reduces equity of a company, it should be debited.

Option c.

Since, accounts payable is a short term liability and increase overall liability when it increases, it should be credited.

Option d.

Since, cash is an asset and decrease overall asset when it reduces, it should be credited.

Option e.

Since, there is no effect on the common stock in the given transaction, it should remain same.

Conclusion

Thus, the correct option is b.

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Answer 4

Question

Chapter 2, Problem 1MCQ

To determine

Journal Entry:

It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm.

Rules of Journal Entry: The rules for journal entry are defined by five accounting components,

Assets: Increase in asset should be debit and decrease should be credit.

Liabilities: Increase in liabilities should be credit and decrease should be debit.

Equity: Increase in Equity should be credit and decrease should be debit.

Expense: Increase in expense should be debit and decrease should be credit.

Revenue: Increase in revenue should be credit and decrease should be debit.

To Identify: Correct statement from given statements.

Answer:

Option b, debit to utility expense for $700 is the correct option.

Expert Solution & Answer

Explanation of Solution

Option b.

Since, increase in expense reduces equity of a company, it should be debited.

Option a.

Since, increase in expense reduces equity of a company, it should be debited.

Option c.

Since, accounts payable is a short term liability and increase overall liability when it increases, it should be credited.

Option d.

Since, cash is an asset and decrease overall asset when it reduces, it should be credited.

Option e.

Since, there is no effect on the common stock in the given transaction, it should remain same.

Conclusion

Thus, the correct option is b.

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Answer 5

Chapter 2, Problem 1MCQ

To determine

Journal Entry:

It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm.

Rules of Journal Entry: The rules for journal entry are defined by five accounting components,

Assets: Increase in asset should be debit and decrease should be credit.

Liabilities: Increase in liabilities should be credit and decrease should be debit.

Equity: Increase in Equity should be credit and decrease should be debit.

Expense: Increase in expense should be debit and decrease should be credit.

Revenue: Increase in revenue should be credit and decrease should be debit.

To Identify: Correct statement from given statements.

Answer:

Option b, debit to utility expense for $700 is the correct option.

Expert Solution & Answer

Explanation of Solution

Option b.

Since, increase in expense reduces equity of a company, it should be debited.

Option a.

Since, increase in expense reduces equity of a company, it should be debited.

Option c.

Since, accounts payable is a short term liability and increase overall liability when it increases, it should be credited.

Option d.

Since, cash is an asset and decrease overall asset when it reduces, it should be credited.

Option e.

Since, there is no effect on the common stock in the given transaction, it should remain same.

Conclusion

Thus, the correct option is b.

Answer 6

Chapter 2, Problem 1MCQ

To determine

Journal Entry:

It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm.

Rules of Journal Entry: The rules for journal entry are defined by five accounting components,

Assets: Increase in asset should be debit and decrease should be credit.

Liabilities: Increase in liabilities should be credit and decrease should be debit.

Equity: Increase in Equity should be credit and decrease should be debit.

Expense: Increase in expense should be debit and decrease should be credit.

Revenue: Increase in revenue should be credit and decrease should be debit.

To Identify: Correct statement from given statements.

Answer:

Option b, debit to utility expense for $700 is the correct option.

Expert Solution & Answer

Explanation of Solution

Option b.

Since, increase in expense reduces equity of a company, it should be debited.

Option a.

Since, increase in expense reduces equity of a company, it should be debited.

Option c.

Since, accounts payable is a short term liability and increase overall liability when it increases, it should be credited.

Option d.

Since, cash is an asset and decrease overall asset when it reduces, it should be credited.

Option e.

Since, there is no effect on the common stock in the given transaction, it should remain same.

Conclusion

Thus, the correct option is b.

Answer 7

Chapter 2, Problem 1MCQ

To determine

Journal Entry:

It refers to the process of recording the data into books of accounts on continuous basis. It is a process of record keeping for every transaction by a company or a firm.

Rules of Journal Entry: The rules for journal entry are defined by five accounting components,

Assets: Increase in asset should be debit and decrease should be credit.

Liabilities: Increase in liabilities should be credit and decrease should be debit.

Equity: Increase in Equity should be credit and decrease should be debit.

Expense: Increase in expense should be debit and decrease should be credit.

Revenue: Increase in revenue should be credit and decrease should be debit.

To Identify: Correct statement from given statements.

Answer:

Option b, debit to utility expense for $700 is the correct option.

Answer 8

Expert Solution & Answer

Explanation of Solution

Option b.

Since, increase in expense reduces equity of a company, it should be debited.

Option a.

Since, increase in expense reduces equity of a company, it should be debited.

Option c.

Since, accounts payable is a short term liability and increase overall liability when it increases, it should be credited.

Option d.

Since, cash is an asset and decrease overall asset when it reduces, it should be credited.

Option e.

Since, there is no effect on the common stock in the given transaction, it should remain same.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, the correct option is b.

Answer 12

Ch. 2 - Prob. 1MCQ Ch. 2 - Prob. 2MCQ Ch. 2 - Prob. 3MCQ Ch. 2 - Prob. 4MCQ Ch. 2 - Bonaventure Company has total assets of...Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - Prob. 2DQ Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ

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