Exam 15: Basic Accounting for Transactions

When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue.

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year: Assets Liabilities Beginning of the year \ 114,000 \ 68,000 End of the year 135,000 73,000 If the owners made no investments in the business and no dividends were paid during the year, what was the amount of net income earned by Josephine's Bakery during the current year?

The three general categories of accounts in a general ledger are __________________, _________________ and __________________________.

Which of the following accounts is a balance sheet account?

Indicate whether a debit or credit entry would be made to record the following changes in each account: a.To decrease Cash. b.To increase Common Stock. c.To decrease Accounts Payable. d.To increase Salaries Expense. e.To decrease Supplies. f.To increase Revenue. g.To decrease Accounts Receivable. h.To increase Retained Earnings.

An account balance is the difference between the debits and credits for an account including any beginning balance.

A general journal is:

The following transactions occurred during July: A.Received $900 cash for services provided to a customer during July. B.Received $2,200 cash investment from Barbara Hanson, the owner of the business. C.Received $750 from a customer in partial payment of his account receivable, which arose from sales in June. D.Provided services to a customer on credit, $375. E.Signed a promissory note for a $6,000 bank loan. F.Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July?

A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.