Journalizing Accounting Entries! Trivia Questions Quiz

Explanation
The correct answer is Cash/Notes Payable/Computer Equipment. This is because the computer was purchased by paying 30 percent in cash and the remainder was financed by signing a banknote, which creates a liability (Notes Payable). The cash paid and the liability created are both recorded in the Cash account. The purchase of the computer equipment is recorded in the Computer Equipment account.

Explanation
The correct answer is Cash/Salaries Expense because cash was used to pay the salaries for the month. This transaction involves a decrease in the cash account as well as an increase in the salaries expense account.

Explanation
The correct answer is Cash/Owner Withdraw because when the owner withdraws cash for personal use, it is recorded as a decrease in the cash account and a decrease in the owner's equity. The transaction does not involve any accounts receivable or notes payable.

Explanation
The correct answer is Office Supplies/Accounts Payable because when office supplies are purchased on account, it means that the company has received the supplies but has not yet paid for them. Therefore, the transaction would be recorded as an increase in the Office Supplies account (an asset) and an increase in the Accounts Payable account (a liability) to reflect the amount owed to the supplier.

Explanation
The correct answer is Sales/Accounts Receivable because when sales are charged to guests, it means that the guests will pay for the goods or services at a later date. This creates an account receivable, which represents the amount owed by the guests to the company. Therefore, the entry to record this transaction would involve debiting the Sales account to recognize the revenue and crediting the Accounts Receivable account to reflect the amount owed by the guests.

Explanation
The correct journal entry for this transaction would be to debit Cash for $500 and credit Accounts Receivable for $1,500. This entry reflects the fact that Karyn's Kraft Catering received $500 in cash and the remaining balance of $1,500 is placed on account, indicating that it is still owed by the customer.

Explanation
The correct journal entry for Kraft Catering purchasing equipment on account for $125,000 would be to debit the Equipment account for $125,000 and credit the Accounts Payable account for $125,000. This entry reflects the increase in the Equipment asset and the corresponding increase in the liability of the company to pay for the equipment in the future.

Explanation
The correct journal entry would be to debit the Beverage Expense account for $500 and credit the Cash account for $500. This entry reflects the purchase of beverages with cash, which decreases the cash balance and increases the expense for beverages.

Explanation
The correct journal entry for Kraft Catering paying an advertising bill of $1,500 would be to debit the Advertising Expense account for $1,500 and credit the Accounts Payable account for $1,500. This entry reflects the decrease in the company's assets (cash) and the increase in its expenses (advertising), as well as the decrease in its liabilities (accounts payable) as the bill is paid.

Explanation
The correct journal entry for this transaction would be to debit the Cash account for $600 and credit the Catering Revenue account for $600. This entry reflects the increase in cash received by Kraft Catering and recognizes the revenue earned from the catering party that was performed two months ago.