August 29. The company received a bill for rent of equipment that was used on a recently completed job. The $780 rent cost must be paid within 30 days.The correct journal entry is:
A. Dr. Rent expense 780 Cr. Accounts payable 780
B. Dr. Rent expense 780 Cr. Cash 780
C. Dr. Prepaid expense 780 Cr. Cash 780
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August 28. The company completed travelling service for $2,650 on credit.The correct journal entry is:
A. Dr. Cash 2,650 Cr. Fees earned 2,650
B. Dr. Accounts receivable 2,650 Cr. Sales 2,650
C. Dr. Accounts receivable 2,650 Cr. Fees earned 2,650
August 25. The company recorded the cash received in payment of services (on a cash basis) to customers, $16,000.The correct journal entry is:
A. Dr. Cash 16,000 Cr. Fees earned 16,000
B. Dr. Cash 16,000 Cr. Sales 16,000
C. Dr. Accounts receivable 16,000 Cr. Fees earned 16,000
August 14. The company paid $2,800 cash for two weeks’ salaries earned by employees.The correct journal entry is:
A. Dr. Salaries expense 2,800 Cr. Cash 2,800
B. Dr. Prepaid expense 2,800 Cr. Cash 2,800
C. Dr. Salaries expense 2,800 Cr. Accounts payable 2,800
August 10. The company paid $2,502 cash for the premium on a 12-month insurance policy. Coverage begins on August 11.The correct journal entry is:
A. Dr. Insurance expense 2,502 Cr. Cash 2,502
B. Dr. Insurance expense 208.5 Cr. Cash 208.5
C. Dr. Prepaid insurance 2,502 Cr. Cash 2,502