GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
4th Edition
ISBN: 9781260087376
Author: M. David Haddock Jr. Professor
Publisher: McGraw-Hill Education
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Chapter 2, Problem 5DQ

Describe the effects of each of the following business transactions on assets, liabilities, and owner’s equity.

  1. a. Bought equipment on credit.
  2. b. Paid salaries to employees.
  3. c. Sold services for cash.
  4. d. Paid cash to a creditor.
  5. e. Bought furniture for cash.
  6. f. Sold services on credit.
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When a company collects cash from a customer in advance, it should:A. Recognize revenue immediatelyB. Record a liabilityC. Record it as equityD. Ignore it until revenue is earned
The journal entry to record the purchase of office supplies on account would include:A. Debit Supplies, Credit CashB. Debit Supplies, Credit Accounts PayableC. Debit Cash, Credit SuppliesD. Debit Accounts Payable, Credit Supplies
7. Which of the following is an adjusting entry?A. Payment of salariesB. Depreciation expenseC. Purchase of suppliesD. Payment of rent in advance
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