What is the correct journal entry when a company purchases inventory on credit?
A) Debit Accounts Payable, Credit Cash
B) Debit Inventory, Credit Accounts Payable
C) Debit Cash, Credit Inventory
D) Debit Accounts Receivable, Credit Inventory
When a company receives cash for services rendered, which journal entry is made?
A) Debit Accounts Receivable, Credit Service Revenue
B) Debit Service Revenue, Credit Cash
C) Debit Cash, Credit Service Revenue
D) Debit Cash, Credit Accounts Receivable
If a business buys office equipment on credit, the correct journal entry is:
A) Debit Office Supplies, Credit Accounts Payable
B) Debit Office Equipment, Credit Cash
C) Debit Office Equipment, Credit Accounts Payable
D) Debit Office Equipment, Credit Office Supplies
What is the journal entry when a company pays off its accounts payable?
A) Debit Accounts Payable, Credit Cash
B) Debit Cash, Credit Accounts Payable
C) Debit Cash, Credit Accounts Receivable
D) Debit Accounts Payable, Credit Service Revenue
When a business receives a loan from a bank, the journal entry is:
A) Debit Cash, Credit Bank Loan
B) Debit Bank Loan, Credit Cash
C) Debit Cash, Credit Notes Payable
D) Debit Notes Payable, Credit Cash
When a company issues common stock for cash, the correct journal entry is:
A) Debit Cash, Credit Common Stock
B) Debit Common Stock, Credit Cash
C) Debit Common Stock, Credit Accounts Payable
D) Debit Accounts Payable, Credit Common Stock
Which journal entry is made when a company pays wages to its employees?
A) Debit Wages Payable, Credit Cash
B) Debit Cash, Credit Wages Expense
C) Debit Wages Expense, Credit Cash
D) Debit Cash, Credit Wages Payable
What is the journal entry when a company earns interest on a loan it gave to another party?
A) Debit Interest Revenue, Credit Accounts Receivable
B) Debit Cash, Credit Interest Revenue
C) Debit Accounts Receivable, Credit Interest Revenue
D) Debit Interest Expense, Credit Cash
When a company receives an advance payment from a customer, the journal entry is:
A) Debit Cash, Credit Sales Revenue
B) Debit Accounts Receivable, Credit Unearned Revenue
C) Debit Cash, Credit Unearned Revenue
D) Debit Accounts Payable, Credit Sales Revenue
If a company purchases inventory with cash, the journal entry is:
A) Debit Inventory, Credit Cash
B) Debit Cash, Credit Inventory
C) Debit Inventory, Credit Accounts Payable
D) Debit Accounts Payable, Credit Cash
When a company receives payment from a customer on account, the journal entry is:
A) Debit Accounts Payable, Credit Cash
B) Debit Cash, Credit Accounts Receivable
C) Debit Accounts Receivable, Credit Cash
D) Debit Accounts Receivable, Credit Service Revenue
What journal entry is made when an owner withdraws cash from the business for personal use?
A) Debit Drawings, Credit Cash
B) Debit Cash, Credit Drawings
C) Debit Owner’s Equity, Credit Cash
D) Debit Cash, Credit Capital
When a company declares a dividend, the journal entry is:
A) Debit Retained Earnings, Credit Cash
B) Debit Dividend Expense, Credit Dividends Payable
C) Debit Dividends Payable, Credit Cash
D) Debit Dividends Payable, Credit Retained Earnings
If a company sells an asset for cash, the journal entry is:
A) Debit Cash, Credit Asset
B) Debit Asset, Credit Cash
C) Debit Cash, Credit Revenue
D) Debit Asset, Credit Revenue
Which journal entry should be made when a business incurs an expense but has not yet paid for it?
A) Debit Expense, Credit Accounts Payable
B) Debit Accounts Payable, Credit Expense
C) Debit Cash, Credit Expense
D) Debit Expense, Credit Cash
When a company pays for insurance coverage in advance, the journal entry is:
A) Debit Prepaid Insurance, Credit Cash
B) Debit Insurance Expense, Credit Cash
C) Debit Cash, Credit Prepaid Insurance
D) Debit Insurance Expense, Credit Prepaid Insurance
The journal entry to record the depreciation of an asset is:
A) Debit Depreciation Expense, Credit Accumulated Depreciation
B) Debit Accumulated Depreciation, Credit Depreciation Expense
C) Debit Asset, Credit Depreciation Expense
D) Debit Accumulated Depreciation, Credit Asset
When a company repays a loan, the journal entry is:
A) Debit Loan Payable, Credit Cash
B) Debit Cash, Credit Loan Payable
C) Debit Loan Payable, Credit Accounts Payable
D) Debit Accounts Payable, Credit Cash
When an owner invests personal funds into the business, the journal entry is:
A) Debit Capital, Credit Cash
B) Debit Cash, Credit Capital
C) Debit Capital, Credit Revenue
D) Debit Cash, Credit Owner’s Equity
If a company makes a sale on credit, the journal entry is:
A) Debit Accounts Receivable, Credit Sales Revenue
B) Debit Cash, Credit Sales Revenue
C) Debit Accounts Receivable, Credit Cash
D) Debit Sales Revenue, Credit Accounts Receivable
What is the correct journal entry when a business receives a refund for overpaid expenses?
A) Debit Cash, Credit Expense
B) Debit Accounts Payable, Credit Cash
C) Debit Expense, Credit Cash
D) Debit Cash, Credit Accounts Payable
When a company borrows money from a bank and signs a promissory note, the journal entry is:
A) Debit Cash, Credit Notes Payable
B) Debit Notes Payable, Credit Cash
C) Debit Cash, Credit Bank Loan
D) Debit Bank Loan, Credit Notes Payable
When goods are returned by a customer, which journal entry should be made?
A) Debit Sales Returns and Allowances, Credit Accounts Receivable
B) Debit Accounts Receivable, Credit Sales Returns and Allowances
C) Debit Accounts Payable, Credit Inventory
D) Debit Inventory, Credit Sales Returns and Allowances
The journal entry for bad debts expense is:
A) Debit Bad Debts Expense, Credit Accounts Receivable
B) Debit Accounts Receivable, Credit Bad Debts Expense
C) Debit Bad Debts Expense, Credit Allowance for Doubtful Accounts
D) Debit Allowance for Doubtful Accounts, Credit Bad Debts Expense
When a business pays for utility expenses, the journal entry is:
A) Debit Utilities Expense, Credit Accounts Payable
B) Debit Cash, Credit Utilities Expense
C) Debit Utilities Expense, Credit Cash
D) Debit Utilities Expense, Credit Accounts Receivable
The journal entry for a credit sale of merchandise is:
A) Debit Sales Revenue, Credit Accounts Receivable
B) Debit Accounts Receivable, Credit Sales Revenue
C) Debit Cash, Credit Accounts Receivable
D) Debit Inventory, Credit Sales Revenue
What is the journal entry when the business pays for rent in advance?
A) Debit Rent Expense, Credit Cash
B) Debit Prepaid Rent, Credit Cash
C) Debit Cash, Credit Rent Expense
D) Debit Prepaid Rent, Credit Rent Payable
If a company issues a refund to a customer, the journal entry is:
A) Debit Cash, Credit Sales Returns
B) Debit Sales Returns and Allowances, Credit Cash
C) Debit Sales Revenue, Credit Cash
D) Debit Accounts Payable, Credit Sales Returns
The journal entry to record a sale of goods on credit is:
A) Debit Cash, Credit Sales Revenue
B) Debit Accounts Receivable, Credit Sales Revenue
C) Debit Accounts Receivable, Credit Inventory
D) Debit Sales Revenue, Credit Accounts Receivable
When the company settles a liability to a supplier, the journal entry is:
A) Debit Accounts Payable, Credit Cash
B) Debit Cash, Credit Accounts Payable
C) Debit Cash, Credit Notes Payable
D) Debit Accounts Payable, Credit Notes Payable
