Intermediate Accounting Exam 1 Questions with Verified Solutions

Intermediate Accounting Exam 1 Questions with Verified Solutions Indicate which accounts should be debited and credited. Purchased inventory for cash. - answerDebit inventory, credit cash Indicate which accounts should be debited and credited. Paid a cash dividend. - answerDebit Retained earnings, credit cash Indicate which accounts should be debited and credited. Paid rent for the next three months. - answerDebit Prepaid rent, credit cash Indicate which accounts should be debited and credited. Sold goods to customers on account. (To record sale of goods to customers.) - answerDebit A/R, credit Sales revenue Indicate which accounts should be debited and credited. Sold goods to customers on account. (To record cost of goods sold to customers). - answerDebit COGS, credit Inventory Indicate which accounts should be debited and credited. Purchased inventory on account. - answerDebit Inventory, credit Accounts payable Indicate which accounts should be debited and credited. Purchased supplies for cash. - answerDebit Supplies, credit cash Indicate which accounts should be debited and credited. Paid employee salaries and wages for September. - answerDebit salaries and wages payable, credit cash Indicate which accounts should be debited and credited. Issued common stock in exchange for cash. - answerDebit cash, credit common stock Indicate which accounts should be debited and credited. Collected cash from customers for goods sold on account previously. - answerDebit cash, credit A/R Indicate which accounts should be debited and credited. Borrowed cash from a bank and signed a note. - answerDebit cash, credit note payable Indicate which accounts should be debited and credited. At the end of October, recorded the amount of supplies that had been used during the month. - answerDebit Supplies expense, credit Supplies Indicate which accounts should be debited and credited. Received cash for advance payment from customer. - answerDebit cash, credit deferred revenue Indicate which accounts should be debited and credited. Accrued employee salaries and wages for October. - answerDebit salaries and wage expense, credit salaries and wages payable Halogen Laminated Products Company began business on January 1, 2016. During January, the following transaction occurred: Jan. 1: Issued common stock in exchange for $115,000 cash. Prepare general J/E. - answerDebit cash $115,000, credit common stock $115,000 Halogen Laminated Products Company began business on January 1, 2016. During January, the following transaction occurred: Jan. 2: Purchased inventory on account for $30,000 (the perpetual inventory system is used). Prepare general J/E. - answerDebit inventory $30,000, credit Accounts payable $30,000 Halogen Laminated Products Company began business on January 1, 2016. During January, the following transaction occurred: Jan. 4: Paid an insurance company $1,800 for a one-year insurance policy. Prepare general J/E. - answerDebit prepaid insurance $1,800, credit cash $1,800 Halogen Laminated Products Company began business on January 1, 2016. During January, the following transaction occurred: Jan. 10: Sold merchandise on account for $11,500. The cost of the merchandise was $6,500. Prepare general J/E. - answerDebit A/R $11,500, credit Sales revenue $11,500 Debit COGS $6,500, credit Inventory $6,500 Halogen Laminated Products Company began business on January 1, 2016. During January, the following transaction occurred: Jan. 15 Borrowed $25,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. Prepare general J/E. - answerDebit cash $25,000, credit note payable $25,000 Halogen Laminated Products Company began business on January 1, 2016. During January, the following transaction occurred: Jan. 20: Paid employees $5,500 salaries and wages for the first half of the month. Prepare general J/E. - answerDebit salaries and wages expense $5,500, credit cash $5,500 Halogen Laminated Products Company began business on January 1, 2016. During January, the following transaction occurred: Jan. 22: Sold merchandise for $9,500 cash. The cost of the merchandise was $5,500. Prepare general J/E. - answerDebit cash $9,500, credit sales revenue $9,500 Debit COGS $5,500, credit inventory $5