1 Assume Mr. Smith started his carpet cleaning business. He took $100,000 and open his business 11/1/2023. What would be the journal entry to start the business. A) Debit Cash $100,000 and credit revenue $100,000. B) Debit Cash $100,000 and credit Equity account $100,00. C) Debit Cash Expense $100,000 and Credit Note Payable $100,000. D) None of the above. 2 Assume the following on 11/2/2023 Mr. Smith purchased supply on account for $875 and return $100 that same day, what is the journal entry to record the purchased of the supply. A) Debit Supply $875 and credit other income $875. B) Debit Supply $775 and credit account payable $775. C) Debit Accounts payable $775 and credit supply $775. D) Debit Account Payable $775 and credit supply expense $775. 3 On 11/3/2023\Mr. Smith purchased insurance company $1,200 for 12 months. The entry to record the insurance payment would be: A) Debit insurance expense $1,200 and credit cash for $1,200. B) Debit prepaid insurance $1,200 and credit cash for $1,200. C) Debit prepaid expense $1,200 and credit account payable $1,200. D) None of the above. 4 On 11/8/2023 purchased Equipment for $6,000, paid cash 4,500 and signed Note payable. The entry to record the transaction would be. A) Debit Equipment expense $6,000 and credit cash $4,500 and credit Note Payable. B) Debit Equipment $6,000 credit cash $4,500 and credit accounts payable. C) Debit Equipment $6,000 and credit Note Payable 4,500 and credit cash 1,500. 5. On 119/2023 tired secretary , she will start ncti menth. The journal entry to record the lhigher in. A) Debit Salary expense aod credit cash. B) Debit Salary expense and credit accoents payable. C) Debir Salary exprase and credit cquity. D) None of the above. 6 On 11/02023 received cash in advance to perform service nect month. The ameunt received was 525,090 , what woeld be the joarmal eatry- A) Debir Cash 525,000 and credit Other inceme 525,000 . B) Debit Cash 525,000 asd Rerenee \$25,000. C) Debir Cash $25,000 and credit wnearned revenec 525,000 . D) None of the abeve. 7 On 1113/23 Perlormed services for client and billed her 517,000. What is the joernal catry to resord the senices performed. A) Dehit Acceent Reeeivable $17,000 and credit Service Reveme 517,000 . B) Debit Cash \$17,000 asd Revenee $17,000. C) Debit Cash $17,000 and eredit unearned revener 517,000. D) None of the above. 8 On 11/17/23 received $10,000 from the client billied. The jeurnal entry is: A) Debir Cash 10,000 and credit account receivable s1e,000. B) Dehit cash 10,000 and credit roenee 510,000 . C) Debit Cash 10,000 and credit enearned rerenee $10,000. D) None of the above. 9 What balance should the aceoust receivable have after receiving the payment. A) 12,0000 B) 7,000 C) 30,000 D) 18.000 10 On 11/9/23 paid Secretary for ene weck salary the amouat was $1,200, the journal to reeard the espense. A) Debit Cash 31,200 and credit espense for \$1.200. B) Debit Salary Expense 51,200 and Credit Cash 51,200. C) Debit Salary expemse 51,200 and credit aceounts payable 51,200. D) None of the above. 11 On 11/20/23 Mr. Smith performed services asd rectived canh ar S6e,000. Wlat it the journal entry to recerd the trancactien. A) Drbit Acceent Receivable $60.090 asd Credit Serice Reveaue $66,900. B) Debit Cash 560,000 and Credit Service Revenue 560.000 . C. Credit eash $60,000 and Dehit revenue $60,000. b) None of the above. 12 On 11/22/23 paid adverting fee for the menth. The amvent dae was 1,600 . A) Debit Adverting E.vpense 51,600 and credit cash for 51,690 . B) Debit Miscellanesus Expense $1,600 and credit acceuntb payable 51,66e. C) Detit Depreciation espense for 1,660 and aecemulated S1.690 dcpreciutiene. D) None of the above. 13 On 11/2./23 oftice supplies used was 5400 during the month of November On 11/23/23 office supplies uxed was 3400 during the month of November A) Cash 5400 and credit office sepplies for 460. B) Debit OIGice supplies expense $400 and eredit office supplies 400 . C) Debit Ofliee supply $400 and eredit eash for 400 . D) None of the above. 14 Mr. Smith paid 51.500 to Nete payable. What would the eatry be: A) Debit Nete Payable 51,500 and Credit Cash for \$1,50e. B) Debit Note Payable 51,500 and credit Account payable 51,500. C) Debit Note Payablel.500 asd erdit Other income $1.500. D) None of the above. 15. How much is still outstanding on the Note Payable. A) 1,000 B) 600 C) 1,400 D) 0 16 On 11/25/23 the company ruceived ielepheoe bill for 5750 , which will be pay art menth. The entry to recond transaction is the followieg- A) Debit Telcphoae 5750 Eypeses asd Credit Cash 5750 . B) Debit Telephone 5790 Expense and credit Notre Payable 57.4. C) Debit Telephoee $750 Expense and credir aceounts Rayable 5750. 17. What weald be the journal to record depreciation for the month of November 20e6, basis en question 4 , estimated life 5 years salvage is 1.006. A) Debit Depreciation Expense 83.00 aed credit accuenalated depreciatioe - B) Debit Deprecation Expense 1.000 and credit accumelated depreciation C) Debit Misecllaneous expense 76.98 and eredi accumulated depreciation. D) None of the ahove. 18 On 11/24/23 recived and paid tialities for 5350. What is the entry to reeerd the expense. A) Debit Utilities 3350 and credit accennt payable for 5350 . B) Debit Accounts Payable 5350. C) Credir Cash $350 and Debit Etilities expease for \$350. D) None of the above. 19. The secretary was paid second time 51,700 , the entry to recard the transactiee is A) Debit Cash $1,700 and eredit expense for $1,700. B) Debit Salary Expense 5 1,700 and Credit Cash. \$1,700. C) Debit Salary expense 5 1,700 and credit accounts payalile 51,700 . D) None of the above. 20 On 11/29/23 Mr. Smith Withdrawal S 3,60e for his pervenal wse. The entry te record the transactions is: A) Detir withdrawal expense $3,000 and credit each 5.3,000. B) Debit withdrawal $3,000 and credit cash $3,000. C) Debit Aeceents payable 53.000 and credit cash \$3,600. D) None of the above. 21 What the journal entry for the following transaction, assume Mr. Smith perflermed Srrvice 525,000, he received 515,000 in cash and the differenee was billed to the clicet. B) Debit Cash 16,000, Debit Acceunt receivable $15,000 and credit scrvice revenee S2S,,00 C) Debit Acceent receivable 525,000 and credit service revenues25,000. D) None of the above. 22 Basis from questions 1 to 21 nhat is the net inceme or loss for 113023. A) Net lacome 595,917 . B) Net Inceme 585,917 C) Net l.oss ($76,917) D) None of the ahove. 23 Basis from questions 1 to 21 what is the ending balance for the equity 1t/3e23. A) $192,917. B) 5182,917 . C) 5176,200 . D) None of the ahove. 24 What is the eading balance income summary. A) 5192,917 . B) $182.917. C) $176,200. D) 0 25. What is the eading eash balasce at 11/3e/23. A) 175,000 B) 197,950 C) 187,700 D) Nose of the abeve. Part 2 Merchandise laventery 26 1/4/20 Purchase merchandise Imventery on account frem Vanderbilit Campany; 5 Terms, Terms 1/10, a/EOM, FOB shipping point, the entry should be- A) Debit Merehandise Inveatory for 57,000 and credit Acceunts Payable. B) Debir Merchandise Imventery for $7,000 and credit Note Payable. C Debit Merebandise laventory for $7,000 and credit Aecrue Liability. D) Nane of the abeve. 27 Paid freight bill of 5190 on 1/4/ purchase, the entry is. A) Debit Fretght out $100 and credit cash $100. B) Debit Freight In and credit account payable siot. C) Debit Freight in and credit cash $100. D) Nose of the abeve. 28 Returned lalf the investory purchased on 1/4/23 from Vanderbilt Cempany, the entry is: A) Debit Account payable 53,500 and cash 53.500 . B) Debit Account Payable \$3,500 and credit Merchandise Ieventery 53,500. C) Debit Account PayableS 1,500 and credit Merchandise Inventory \$1,5e0. 29 Sold merchandise inventory for cash, 51,600 Cont of nonde, 5646.FOB A) Debir Cash 51,600 and credit sale 51,490, Debit Cent of Covd Sold for she0 and crodir me B) Debit aceent recrivabe for S1,6e0, crodit sale, Debit Cout Good Sold foe soab and crolit C) Debit Cost of Good Sold and credit sale 51,600 and Debil Sale and erodit arcent payabk 30 Sold merchandise isventery to Graceland Corporatien. s10.s.0, en account, termik terams al Coot of goods sold, 55,400. FOB shipping peint. The cetry is? A) Debit AM Graccland 516.380 and credit vale 516.890, Debir Coet of Geed Sold 55,ave and B) Debit AR Graceland 55,400 and aredit sale 55,400, Debit Cent of Good Sild 55, ane and C) Debir Cash s10,805 and eredit sale s10.soe, Deblit Cest of Good Sold ss, abe and Credit M D) Nose of the abeve. 31 Paid freight bill of S0e on lanuary 16. 2623 sale, the emiry is? A) Frcigh 0 out 560 and ervlit cash 560 . B) Debit Freieht ins6e and eredit cash 560 . C) Credit Cost of good sold and dehit sale $60. D) Nene of the above. 32. Sold merehandise imventery te Cabell Cempany, 59_.500 at atcount, turm of a 45 . A) Debit NK Cabell 50,500 and credit sale 50 500, Drhit Cout of Geod Sela s5.225 and Crodi D) Neat of the above. 33 Paid the amesnt awed on wcceant frem 1/4/2025, less retern and dhenust. A) Detrit Account payable 53,560 , credit cash 53,465 aed crdit merthandine Leveatory 536,0 8) Debit Nete payable 53,500 , credit canh 53,466 and credit merchandihe lewotery 515.00 C) Debir Sale 53500 , eredit cash 51,465 and credit merchandhe laventery s35 ie D) Nease of the abeve. 34 Received detective inventery as a kale retura from the 11323, sale 690 and cat of good sild s30e. The ratry to rhcurd the transaction is: A) Debit Sale return and allowance $600 and credit acweunt receivalke, Dobir merchumalie s B) Debit Sale rrturn and allowaece 5360 and credit account receivable, Dethit merchasdise S 3 erm $4