Which Of The Following Accounts Are Examples Of Revenues

Question: Jeff invests an additional $100 into his company from his personal checking account. How would this affect the equity of his business?

Answer: Common stock would be increased and total equity would also increase

Question: J. Brown paid $40 to its stockholders. Show how to record the transaction to the T-accounts by completing the following sentence:

Dividends would be _______ on the _______ side of the T-account, and cash would be _________ on the ________ side of the T-account

Answer: debited; left; credited; right

Question: Creditors

Answer: Individuals or organizations that have rights to receive payments from a business

Question: Liabilities

Answer: Claims against the assets of a business

Question: Assets

Answer: Things of value owned by a business

Question: Expenses

Answer: The costs of doing business

Question: On Mar 3, Lyons Company received $100 cash in advance of providing catering services to a customer. Use your knowledge of what a correct journal entry should look like to identify what would be included in the correct journal entry

Answer: -Cash would be debited and listed first

-Unearned Revenue would be credited and listed second

Question: You are entering a transaction in the journal. Place the following steps in the order that they would be entered in the journal

Answer: 1. Enter date of transaction in date column

2. Enter name of account(s) debited and their amount(s)

3. Enter name of account(s) credited and their amount(s)

4. Enter explanation

Question: Gunner Company made a $50 payment on account for a previous equipment purchase. Show how this transaction should be entered into T-accounts of Gunner Company.

Answer: Place $50 on left side of the Accounts payable account; place $50 on the right side of the Cash account

Question: The Dividends account is used to record _________ to the owner and has a ________ impact on equity

Answer: distributions; negative