Please help with question 8, 10, 15, 26, 29. E. Utilities Expense 24. If invento
ID: 2330330 • Letter: P
Question
Please help with question 8, 10, 15, 26, 29.
E. Utilities Expense 24. If inventory that was previously purchased and recorded customer for $4,000 cash, the journal entry to record the A. a debit to Inventory of $3,000. B. a debit to Sales Revenues of $4,000. C. a credit to Sales Revenues of $1,000. D. a credit to Cost of Goods Sold of $3,000. E. none of these 25. Which of the following accounts typically has a credit bal period? A. Accounts Receivable B. Capital Stock C. Cost of Goods Sold D. all of these E. none of these 26. A debit to an expense account causes A. B. net income to increase and retained earnings to decrease. net income and retained earnings to decrease. me to decrease and owner's equity to increase. D. net income and owner's equity to increase. 27. Which of the following accounts would most commonly be A. Land B. Capital Stock C. Retained Earnings D. Accounts Receivable E. Unearned RevenuesExplanation / Answer
8) Right option C
since all purchases are made on account that means credit purchases. so accounts payable account will be credited each time we make a purchase. hence at the time of payment to each of these accounts payable we will credit cash and debit accounts payable.
10) Right answer = option A
General purpose financial statements are created to assist investors, creditors, bankers in making their investment related decision. it includes balance sheet, income statement , cash flow and owners earning. so it shows how much profit entity is earning, what is the position of assets and liabilities , how much cash available.
Also budgeted statements are not part of GPFS. it only shows data of past one year.
15) Right option = E
capital contribution by owners are part of owners equity. and it will increase owner's equity and at the same time it also increases cash , bank or other assets ( in whatever form owner has made contribution).
26) Right anser B
Debit to expense account means an expense has been occured. so it will decrease the income we had earned. For ex we have earned 100 rupees and we have to pay 50 rupees rent so it will be paid from the income.
Also income became part of retained earnings after deducting all expense hence it will reduce retained earning.
29) Right answer A
Transaction are first recorded in journal. after than posting is made to ledgers. After posting all transactions , ledgers account transferred to trial balance and then balance sheet is made.