Round 2 - Journal Entries

Assets/Liabilities

100

What is the journal entry to record the purchase of $800 of inventory for cash?

Inventory $800 Cash ($800)

200

What is the journal entry for the purchase of a car, where you paid $1,000 but worth $1,500?

Car $1,000 Cash ($1,000) **not $1,500, cost principle states you record an asset at what you pay for it.

300

What is the journal entry to record loaning someone $100,000 for 2 years at 6% interest?

Note Receivable $100,000 Cash ($100,000)

400

What is the journal entry when you receive $400 of cash to settle a customer's accounts receivable?

Cash $400 Accounts Receivable ($400)

500

What is the journal entry to record the payment of a utility bill for $100, which was previously accrued?

Accrued Utilities $100 Utilities Expense ($100)

Adjusting Entries

100

At the end of the month, you determine the balance of your office supplies to be $2,000. What Adjusting Entry do you need to record? (The unadjusted balance of Office Supplies was $3,000)

Office Supplies Expense $1,000 Office Supplies ($1,000)

200

At the end of the month, you determine your Deferred Revenue account should have a balance of $700. What adjusting entry do you record? (The unadjusted balance of the Deferred Revenue account was $1,000)

Deferred Revenue $300 Service Revenue ($300)

300

Throughout the month, you have incurred $400 of utilities expenses that have not been paid. What would the adjusting entry you need to make be? (The unadjusted balance in accrued expenses was ($2,000))

Utilities Expense $400 Accrued Expenses ($400)

400

At the end of the month, looking at the services you have performed on account, you determine your accounts receivable balance should be $3,000. What should your adjusting entry be? The unadjusted accounts receivable balance was $2,000.

Accounts Receivable $1,000 Service Revenue ($1,000)

500

At the end of the month, you determine your accumulated depreciation account should be $4,500. What is the adjusting entry you should book at the end of the month? (The unadjusted balance of the accumulated depreciation was $4,000)

Depreciation Expense $500 Accumulated Depreciation ($500)

Closing Entries

100

He is a Canadian who has been hosting America's favorite Quiz Game Show for over three decades!

Alex Trebeck

200

What is the Journal Entry to record the closing of Contributions? (The adjusted Contributions balance was ($10,000))

Capital $10,000 Contributions ($10,000)

300

What is the journal entry to record the closing of Distributions? (The adjusted balance of Distributions was $2,000)

Capital $2,000 Distributions ($2,000)

400

What is the journal entry to record the closing of Revenue? (The adjusted Sales Revenue was ($200,000) and the adjusted Interest Revenue was ($1,000)).

Revenue $201,000 Capital ($201,000)

500

What is the journal entry to record the closing of Expenses? (The adjusted balance of COGS was $175,000, the adjusted balance of rent expense was $5,000 and the adjusted balance of depreciation expense was $4,000).

Capital $184,000 Expenses ($184,000)

Adjusting Entries (the other way)

100

Throughout the month, you utilized $300 of office expenses. What should your Adjusting Entry be? (The unadjusted balance was $3,000).

Office Supplies Expense $300 Office Supplies ($300)

200

Throughout the month, you have earned 50% of your deferred revenue. What should your adjusting entry be? (The unadjusted balance of the Deferred Revenue account was $1,000)

Deferred Revenue $500 Service Revenue ($500)

300

Your employee makes $5,000 a month, and is paid twice a month, on the 18th of this month and the 3rd day of the next month. What is the adjusting journal entry needed at the end of the month? (The unadjusted balance in accrued expenses was ($2,000))

Salaries Expense $2,500 Accrued Expenses ($2,500)

400

Throughout the month, you have performed services of $5,000 for which you have not yet been paid and have not yet been recorded. What is the adjusting entry you should make at the end of the month? The unadjusted accounts receivable balance was $2,000.

Accounts Receivable $5,000 Service Revenue ($5,000)

500

You have an outstanding Note Payable of $100,000 on which you pay 6% interest. What is the adjusting entry you need to record the interest incurred for one month? (The unadjusted balance in accrued expenses was ($2,000))

Interest Expense $500 Accrued Interest ($500) 100,000 x 6% = $3,000 per year, = $500 per month.

Income Statement

100

What is the journal entry to record $400 of services performed on account?

Accounts Receivable $400 Service Revenue ($400)

200

What is the journal entry to record interest expense of $100?

Interest Expense $100 Cash ($100)

300

What is the journal entry to record depreciation expense of $500?

Depreciation Expense $500 Accumulated Depreciation ($500)

400

What is the journal entry to record the sale of a guitar signed by Jimi Hendrix (which, using the Specific ID method, you know cost you $100) for $150?

Cash $150 Sales Revenue ($150) Cost of Goods Sold $100 Inventory ($100)

500

You bought 5 T-Shirts for $5 each on 1/1/18, and 5 more T-Shirts for $6 each on 1/2/18. Your company determines the cost of it's inventory under the LIFO method. What is the journal entry to record a sale of two T-Shirts, for $10 each?

Cash $20 Sales Revenue ($20) Cost of Goods Sold $12 Inventory ($12)