8/11/26, 12:00 PM ACCT 3110 Entrance Exam: Journal Entries Flashcards | Quizlet
Abacus Corporation purchased equipment costing $40,000. It paid $10,000 in cash
and signed a note payable for $30,000. This transaction:
Increased assets and liabilities each by $30,000.
Atlas Corporation sold a used machine for less than its carrying value. This
transaction:
Generated loss on sale of fixed assets.
On July 1, Edmond Office Equipment borrowed $10,000 at an annual interest rate of
10%. Principal and interest are due on December 31. The company's fiscal year ends
on October 31. What adjusting entry should be made on October 31?
($10,000)(0.10)(4/12) = 333
Interest Expense 333
Interest Payable 333
Diaz Corporation purchased a computer system for $20,000. The company paid
$5,000 cash and issued a $15,000 note payable for the entire balance. The journal
entry to record this transaction includes:
A Debit to Equipment for $20,000.
Green Company sold a fixed assets for $100 in cash at the end of 3 years after
acquisition. The original acquisition cost for the fixed assets is $1,000 and the
company had recorded $800 of accumulated depreciation on the asset. The journal
entry to record the asset disposal is:
Cash 100
Accumulated Depreciation 800
Loss on disposal 100
Equipment 1,000
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Abacus Corporation purchased equipment costing $40,000. It paid $10,000 in cash
and signed a note payable for $30,000. This transaction:
Increased assets and liabilities each by $30,000.
Atlas Corporation sold a used machine for less than its carrying value. This
transaction:
Generated loss on sale of fixed assets.
On July 1, Edmond Office Equipment borrowed $10,000 at an annual interest rate of
10%. Principal and interest are due on December 31. The company's fiscal year ends
on October 31. What adjusting entry should be made on October 31?
($10,000)(0.10)(4/12) = 333
Interest Expense 333
Interest Payable 333
Diaz Corporation purchased a computer system for $20,000. The company paid
$5,000 cash and issued a $15,000 note payable for the entire balance. The journal
entry to record this transaction includes:
A Debit to Equipment for $20,000.
Green Company sold a fixed assets for $100 in cash at the end of 3 years after
acquisition. The original acquisition cost for the fixed assets is $1,000 and the
company had recorded $800 of accumulated depreciation on the asset. The journal
entry to record the asset disposal is:
Cash 100
Accumulated Depreciation 800
Loss on disposal 100
Equipment 1,000
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