Intermediate Accounting Exam 1 graded A+ 2023 with answers

Indicate which accounts should be debited and credited. Purchased inventory for cash. - Debit inventory, credit cash Indicate which accounts should be debited and credited. Paid a cash dividend. - Debit Retained earnings, credit cash Indicate which accounts should be debited and credited. Paid rent for the next three months. - Debit 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.) - Debit 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). - Debit COGS, credit Inventory Indicate which accounts should be debited and credited. Purchased inventory on account. - Debit Inventory, credit Accounts payable Indicate which accounts should be debited and credited. Purchased supplies for cash. - Debit Supplies, credit cash Indicate which accounts should be debited and credited. Paid employee salaries and wages for September. - Debit salaries and wages payable, credit cash Indicate which accounts should be debited and credited. Issued common stock in exchange for cash. - Debit cash, credit common stock Indicate which accounts should be debited and credited. Collected cash from customers for goods sold on account previously. - Debit cash, credit A/R Indicate which accounts should be debited and credited. Borrowed cash from a bank and signed a note. - Debit 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. - Debit Supplies expense, credit Supplies Indicate which accounts should be debited and credited. Received cash for advance payment from customer. - Debit cash, credit deferred revenue Indicate which accounts should be debited and credited. Accrued employee salaries and wages for October. - Debit 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. - Debit 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. - Debit 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. - Debit prepaid insurance $1,800, credit cash $1,800