1. A customer makes a payment on account. What would the journal entry look like?

CashXXX Accounts Rec.XXX

2. What would the journal entry look like when a business buys equipment on account?

EquipmentXXX Accounts PayableXXX

3. What would the journal entry look like when a business pays for equipment purchased on account?

Accounts PayableXXX CashXXX

4. What would the journal entry look like when a business pays for equipment with cash?

4. What would the journal entry look like when a business pays for equipment purchased on account? EquipmentXXX CashXXX

5. A business pays salaries of $50,000 on the first and 15 th of each month. What would be the adjusting entry required on the 31 st ?

Salary ExpenseXXX Salary PayableXXX

6. A business uses a perpetual inventory method. What entry would be made to purchase inventory on account?

InventoryXXX Accounts PayableXXX

7. A business uses a perpetual inventory method. What entry would be made to purchase inventory on account with terms of 2/10 net 30?

7. A business uses a perpetual inventory method. What entry would be made to pay inventory on account with terms of 2/10 net 30? Accounts PayableXXX InventoryXXX CashXXX

8. How would you record a return of merchandise? (from customer to your business)

InventoryXXX Accounts ReceivableXXX

9. How would you record a sale of $1000 inventory on account? Cost of goods sold is $600

Cost of Goods SoldXXX InventoryXXX Accounts ReceivableXXX Sales RevenueXXX

10. What entry would be made to establish a petty cash fund?

Petty CashXXX CashXXX

11. Petty Cash was established with $300. The current balance is $50. Office supplies $100 Delivery Expense$144 What is the entry to replenish that?

Office Supply Expense100 Delivery Expense144 Cash Short/Over 6 Cash250

12. What is the entry to record borrowing a 10% note payable. Borrowed amount is $10,000.

Cash10000 Notes Payable10000

13. What is the entry for paying back a 10% note payable. Borrowed amount is $10,000.

Notes Payable10,000 Interest Payable1,000 Cash11,000

14. What is the entry for recording a dividend that was previously declared? The dividend is $.50 per share on 50,000 shares

Dividends Payable25,000 Cash25,000

15. Furniture purchased for $20,000 Accumulated Depreciation $17,000 Sold for $3,500 What is the journal entry for the sale of this furniture?

Accumulated Depreciation17,000 Cash3,500 Gain on Sale of furniture500 Furniture20,000