Journal entries quiz

1. 1.Which document usually triggers recording a supplier bill?

   The supplier's bill (invoice)A bank statementA price quoteA purchase order
2. 2.The owner pays a $150 business bill with a personal card, treating it as an investment:

   Dr Expense, Cr CashNo entryDr Owner Drawings, Cr ExpenseDr Expense, Cr Owner Capital
3. 3.A loan payment of $1,000 includes $80 interest. The debits are:

   Notes Payable $1,000Notes Payable $1,080Interest Expense $1,000Notes Payable $920 and Interest Expense $80
4. 4.A $2,000 job: the customer pays $600 now and owes the rest. What is the debit to Accounts Receivable?

   Your answer (dollars)
5. 5.Receiving a $5,000 bank loan:

   Dr Notes Payable, Cr CashDr Cash, Cr Owner CapitalDr Cash, Cr Service RevenueDr Cash, Cr Notes Payable
6. 6.Equipment costs $8,000. The business pays $2,000 down and signs a note for the rest. What is the credit to Notes Payable?

   Your answer (dollars)
7. 7.A collection was recorded as Dr Accounts Receivable / Cr Cash $300. One correcting entry is:

   Dr Accounts Receivable $600, Cr Cash $600No entry neededDr Cash $300, Cr Accounts Receivable $300Dr Cash $600, Cr Accounts Receivable $600
8. 8.Customer pays $900 for work to be done next month:

   Dr Unearned Revenue, Cr CashNo entry until the work is doneDr Cash, Cr Service RevenueDr Cash, Cr Unearned Revenue
9. 9.Which is a compound entry?

   Dr Rent / Cr CashAny entry with cashDr Equipment / Cr Cash / Cr Notes PayableDr Cash / Cr Revenue
10. 10.Paying this month's wages of $1,800 (no payroll taxes in this question):

    Dr Cash, Cr Wages ExpenseDr Wages Expense, Cr Wages PayableDr Wages Payable, Cr CashDr Wages Expense, Cr Cash
11. 11.Rent of $700 was debited to Utilities Expense. The correcting entry is:

    Dr Rent Expense $700, Cr Cash $700Delete the original entryDr Utilities Expense, Cr Rent ExpenseDr Rent Expense $700, Cr Utilities Expense $700
12. 12.A $420 bill was entered twice. The fix is:

    Reverse both copiesEdit the totals in the ledgerRecord a new billReverse one copy
13. 13.Which details belong in a journal entry? Select all that apply.

    A description or source referenceThe customer's card numberAccounts and amountsDate

    Select all that apply.

14. 14.An invoice for $5,400 was recorded as $4,500. What correcting amount should be added to both accounts?

    Your answer (dollars)
15. 15.Pay $1,200 for 12 months of insurance in advance:

    Dr Prepaid Insurance $1,200, Cr CashDr Cash, Cr Prepaid InsuranceDr Prepaid Insurance, Cr Accounts PayableDr Insurance Expense $1,200, Cr Cash
16. 16.Invoice a client $1,500 for completed work:

    Dr Cash, Cr Service RevenueDr Accounts Receivable, Cr Unearned RevenueDr Service Revenue, Cr Accounts ReceivableDr Accounts Receivable, Cr Service Revenue

Explanations for every option appear after you submit. Journal entries quiz is self-practice, not a proctored test.