QUESTION ASSETS Transactions Received cash trom owner as an investment. 2. Bought supplies on account 3. Paid cash for supplies. 4. Paid cash for Insurance. 5. Pald cash on account. For each transaction, enter a plus sign (+) in the appropriate column if the account classification asset, liability, or owner's equity is increased. Enter a minus sign (-) in the appropriate column if the account classification is decreased. Both a plus sign (+) and a minus sign (-) can be entered, if necessary. Trans. No. Assets = Liabilities + Owner's Equity 2 3

Under the accrual basis of accounting - if cash has been received before the revenue has been earned, which of the following journal entries should be recorded?   A)  Debit Cash,         Credit Unearned Revenue.   B) Debit Cash,         Credit Sales Revenue.   C) Debit Unearned Revenue,          Credit Cash.   D) Debit Cash,           Credit Accounts Receivable.

What are the debits and credits?

Which of the following entries properly closes a temporary account? Select one: a. Income Summary XX Cash b. C. Debit Credit Expense Accumulated Depreciation XX Income Summary Income Summary d. e. XX Retained Earnings XX Dividends Debit Credit Debit Credit XX Debit Credit Income Summary XX Revenue XX XX Debit Credit XX XX

Identify the correct pair of formula from the following column I and II: (Choose the correct alternative) Column I Column II A Current Account Surplus i. Receipts Payments C Balance Current Account i. Receipts + Payments D Current Account Deficit iv. Receipts < Payments Alternatives: а) А -i b) В - ii c) C - ii d) D - iv

Harrigan Service Company, Inc., was incorporated by lan Harrigan and five other managers. The following activities occurred during the year: 1. Received $71,400 cash from the managers; each was issued 1,190 shares. 2. Purchased equipment for use in the business at a cost of $50,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). 3. Signed an agreement with a cleaning service to pay it $690 per week for cleaning the corporate offices, beginning next week. 4. Ian Harrigan borrowed $19,500 for personal use from a local bank, signing a one-year note.