Russell Mahmood, Quiz 1

E 1-7
1. Purchased computers for $20,000 from Digital Equipment on account.
Answer: c
2. Paid $4,000 cash for May rent on storage space.
Answer: d
3. Received $17,000 cash from customers for contracts billed in April.
Answer: a
4. Performed computer services for Viking Construction Company for $4,000 cash.
Answer: b
5. Paid Tri-State Power Co. $11,000 cash for energy usage in May.
Answer: d
6. Falske invested an additional $29,000 in the business.
Answer: b
7. Paid Digital Equipment for the computers purchased in (1) above.
Answer: e
8. Incurred advertising expense for May of $1,200 on account.
Answer: f
E2-4/E2-5
Oct 1 Alan Sanculi begins business as a real estate agent with a cash investment of $15,000.
Ans: Debit cash 15000. Credit Owners Equity 15000
Oct 2 Hires an administrative assistant.
Ans: No change
Oct 3 Purchases office furniture for $1,900, on account.
Ans: Debit Office furniture 1900. Credit Account Payable 1900
Oct 6 Sells a house and lot for R. Craig; bills R. Craig $3,800 for realty services performed.
Ans: Debit Account receivable 3800. Credit Revenue 3800
Oct 27 Pays $1,100 on the balance related to the transaction of October 3
Ans: Debit Account payable 1100. Credit cash 1100

Russell Mahmood, Quiz 1

Oct 30 Pays the administrative assistant $2,500 in salary for October.
Ans: Debit salary expense 2500. Credit Cash 2500

Date
2017
Oct 1
Oct 3
Oct 6
Oct 27
Oct 30

General Journal
Account titles and explanation Debit
Cash
Owners Equity
Office Furniture
Account Payable
Account Receivable
Service Revenue
Account Payable
Cash
Salary Expense
Cash

Credit

15000
15000
1900
1900
3800
3800
1100
1100
2500
2500