Financial Accounting - Journal Entries Exam
& Study Guide | Questions and Answers |
2026/2027
Owner contributes $100 to the business - correct answer-db: Cash 100
cr: Owner's equity 100
Buy a $7,000 machine with cash - correct answer-db: Machines 7,000
cr: Cash 7,000
Buy a $2,000 cr on time with a $100 cash down payment - correct answer-db: Car
2,000
cr: Cash 100
cr: Loans payable 1,900
Borrow $1,000 - correct answer-db: Cash 1,000
cr: Loans payable 1,000
Earn $4,000 of cash income from sales - correct answer-db: Cash 4,000
cr: Sales 4,000
, Pay loan payment of $535, of which $35 is interest - correct answer-db: Loans
payable 500
db: Interest expense 35
cr: Cash 535
Owner buys a $150 of person groceries - correct answer-db: Withdrawal 150
cr: Cash 150
Adjust balloon inventory to make it $500 bigger - correct answer-db: Balloon
inventory 500
cr: Balloon expense 500
Adjust balloon inventory to make it $500 smaller - correct answer-db: Balloon
expense 500
cr: Balloon inventory 500
Record $1,500 of car depreciation - correct answer-db: Depreciation expense
1,500
cr: Accumulated depreciation - car 1,500
Correct $50 wrongly debited to car expense instead of travel expense - correct
answer-db: Travel expense 50
cr: Car expense 50
Close out $10,000 of income and $6,000 of expense accounts - correct answer-
db: Income accounts 10,000
& Study Guide | Questions and Answers |
2026/2027
Owner contributes $100 to the business - correct answer-db: Cash 100
cr: Owner's equity 100
Buy a $7,000 machine with cash - correct answer-db: Machines 7,000
cr: Cash 7,000
Buy a $2,000 cr on time with a $100 cash down payment - correct answer-db: Car
2,000
cr: Cash 100
cr: Loans payable 1,900
Borrow $1,000 - correct answer-db: Cash 1,000
cr: Loans payable 1,000
Earn $4,000 of cash income from sales - correct answer-db: Cash 4,000
cr: Sales 4,000
, Pay loan payment of $535, of which $35 is interest - correct answer-db: Loans
payable 500
db: Interest expense 35
cr: Cash 535
Owner buys a $150 of person groceries - correct answer-db: Withdrawal 150
cr: Cash 150
Adjust balloon inventory to make it $500 bigger - correct answer-db: Balloon
inventory 500
cr: Balloon expense 500
Adjust balloon inventory to make it $500 smaller - correct answer-db: Balloon
expense 500
cr: Balloon inventory 500
Record $1,500 of car depreciation - correct answer-db: Depreciation expense
1,500
cr: Accumulated depreciation - car 1,500
Correct $50 wrongly debited to car expense instead of travel expense - correct
answer-db: Travel expense 50
cr: Car expense 50
Close out $10,000 of income and $6,000 of expense accounts - correct answer-
db: Income accounts 10,000
