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    Acc 31: Quiz 2

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    Felimar Cala
    Juan Cruz established a business on September 1st investing cash, land, and equipment. The business purchased inventory on account and sold some inventory for cash. It purchased supplies and sold goods to a customer on account. Cash was withdrawn and accounts were paid, including collecting part of an account receivable. The business provided services on account and paid expenses like salaries, rent, and supplies.

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    Acc 31: Quiz 2

    Uploaded by

    Felimar Cala
    33 views1 page
    Juan Cruz established a business on September 1st investing cash, land, and equipment. The business purchased inventory on account and sold some inventory for cash. It purchased supplies and sold goods to a customer on account. Cash was withdrawn and accounts were paid, including collecting part of an account receivable. The business provided services on account and paid expenses like salaries, rent, and supplies.

    Original Description:

    Quiz for journalizing

    Original Title

    Journal

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    Juan Cruz established a business on September 1st investing cash, land, and equipment. The business purchased inventory on account and sold some inventory for cash. It purchased supplies and sold goods to a customer on account. Cash was withdrawn and accounts were paid, including collecting part of an account receivable. The business provided services on account and paid expenses like salaries, rent, and supplies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views1 page

    Acc 31: Quiz 2

    Uploaded by

    Felimar Cala
    Juan Cruz established a business on September 1st investing cash, land, and equipment. The business purchased inventory on account and sold some inventory for cash. It purchased supplies and sold goods to a customer on account. Cash was withdrawn and accounts were paid, including collecting part of an account receivable. The business provided services on account and paid expenses like salaries, rent, and supplies.

    Copyright:

    © All Rights Reserved
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    of 1

    Acc 31: Quiz 2

    Name: ____________________________________ Section: _______ Date: __________ Score: ________


    I. Juan Cruz, an engineer, established a business on September 1 which is engaged in the sale of
    merchandise and rendering of professional services. Give the entry to record the following transactions.
    Sept. 1 Juan Cruz put up a business by investing cash of 400,000; Land valued at 1,000,000 and
    Equipment valued at 600,000.
    Sept. 3 The business purchased inventory worth 300,000 by paying cash of 100,000 and the
    balance is on account.
    Sept. 5 Sold inventory costing 120,000 for 320,000 cash.
    Sept. 7 The business purchased office supplies costing 50,000.
    Sept. 10 Sold goods to Ana costing 150,000 for 250,000 on account.
    Sept 13 The owner withdrew cash of 50,000 for personal use
    Sept. 14 Paid the account due on the purchase made on September 3.
    Sept. 16 Collected one half of the account due from Ana.
    Sept. 17 Sold inventory costing 300,000 for 500,000. The customer issued a promissory note in
    exchange for the goods bought.
    Sept. 19 Consulting services rendered amounting to 120,000. The client made an oral promise to
    pay.
    Sept. 23 Paid salaries of office workers amounting to 30,000.
    Sept 25 Paid rent for the month amounting to 25,000.
    II.Identify the Accounts affected by the transactions described below and the Effects on the accounts
    (Increase or Decrease).
    Transaction Accounts affected Effect
    1. Investment of equipment to the business

    2. Payment of note.

    3. Collection of note.

    4. Payment of rent for the month

    5. Acquisition of Land by paying cash and by issuing a note for


    the balance

    6. Payment of business permit

    7. Sale of merchandise to a customer. The customer paid half


    of the amount due and the balance was on account.

    8. Charging of the cost of the inventory sold in #7 as expense

    9. Payment of salaries

    10. Payment of accounts payable

    11. Withdrawal of cash by the owner

    12. Acquisition of inventory by issuing a note

    13. Acquisition of equipment on cash basis.

    14. Acquisition of supplies on account

    15. Payment of the amount due in relation to transaction #14

    16. The owner brought home inventory from the business to be


    used by her children
    17. Professional services rendered on account.

    18. Payment of telephone bill

    19. Receipt of cash for professional services rendered

    20. Investment of Land to the business.

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