1. If liabilities are debited, which of the following situations occurred? a.) The bakery issues 100 shares of stock. b.) The bakery earns interest on its investments. c.) The bakery pays back a bank loan. d.) 2. Expenses have a natural _____ balance and increase with a debit. a.) zero b.) positive c.) debit d.) credit 3. Which of the following characteristics is associated with a general journal? a.) Tuesday's records would follow Monday's records. b.) This is also known as the posting book. c.) There are different accounts for accounts receivable and accounts payable. d.) Each account contains a rolling balance. 4. On January 15, the owner of a sole proprietorship took out $2,000 for their personal use. What would the journal entry for this transaction be? a.) General Journal Page 1 Date Account & Explanation P.R. Debit Credit Jan 15 Wage Expense $2,000 Accounts Payable $2,000 Owner took out cash for personal use. b.) General Journal Page 1 Date Account & Explanation P.R. Debit Credit Jan 15 Wage Expense $2,000 Cash $2,000 Owner took out cash for personal use. c.) General Journal Page 1 Date Account & Explanation P.R. Debit Credit Jan 15 Owner's Withdrawal $2,000 Cash $2,000 Owner took out cash for personal use. 5. General Journal Page 1 Date Account & Explanation P.R. Debit Credit Jan 25 Accounts Payable 201 $500 Cash 101 $500 Paid Accounts Payable in full. How would we post the above journal entry? a.) Accounts Payable is debited and Cash is credited in the General Journal. b.) Cash is debited and Accounts Payable is credited in the Income Summary. c.) Posting a debit to the Cash account and a credit to the Accounts Payable. d.) Accounts Payable is debited and Cash is credited in the General Ledger. 6. The bakery buys five new standing mixers on account