Interest on a loan at the bank is due as of the November 1. We borrowed the $5,000 three months ago at 6% annual interest. Question options: 1) No entry required for this transaction 2) DR Interest Expense 5,000 CR Interest Payable 5,000 3) DR Interest Expense 75 CR Interest Payable 75 4) DR Interest Expense 75 CR Cash 75 Question 2 A customer paid us $600 in advance for merchandise to be shipped to him. At the time the check was received, the Unearned Revenue account was credited. The shipping clerk tell us that one-third of the merchandise has been shipped and received by the customer. Question options: 1) No entry required for this transaction 2) DR Unearned Revenue 600 CR Sales Revenue 600 3) DR Sales Revenue 200 CR Unearned Revenue 200 4) DR Unearned Revenue 200 CR Sales Revenue 200 On the following questions an entry has been given. I need to know if that entry is correct or if the answers below are the correct answer. Again please explain your answer so I understand. Question 3 DR Depreciation Expense 1,500 CR Accumulated Depreciation 1,500 To record depreciation on trucks for the year. The trucks cost $30,000 and have no salvage. They are being depreciated straight line over six years. Question options: 1) Entry is correct 2) DR Accumulated Depreciation 1,500 CR Depreciation Expense 1,500 3)DR Depreciation Expense 1,500 CR Truck 1,500 4) DR Depreciation Expense 5,000 CR Accumulated Depreciation 5,000 Question 4 DR Interest Revenue 730 CR Interest Receivable 730 To record one year’s interest on a loan to an officer of the company. The loan was for $10,000 at 7% annual interest. Question options: 1) Entry is correct 2) DR Interest Revenue 10,000 CR Interest Receivable 10,000 3) DR Interest Receivable 730 CR Interest Revenue 730 4) DR Interest Receivable 700 CR Interest Revenue 700
Question 1
Interest on a loan at the bank is due as of the November 1. We borrowed the $5,000 three months ago at 6% annual interest.
Question options:
1) No entry required for this transaction
2) DR Interest Expense 5,000
CR Interest Payable 5,000
3) DR Interest Expense 75
CR Interest Payable 75
4) DR Interest Expense 75
CR Cash 75
Question 2
A customer paid us $600 in advance for merchandise to be shipped to him. At the time the check was received, the Unearned Revenue account was credited. The shipping clerk tell us that one-third of the merchandise has been shipped and received by the customer.
Question options:
1) No entry required for this transaction
2) DR Unearned Revenue 600
CR Sales Revenue 600
3) DR Sales Revenue 200
CR Unearned Revenue 200
4) DR Unearned Revenue 200
CR Sales Revenue 200
On the following questions an entry has been given. I need to know if that entry is correct or if the answers below are the correct answer. Again please explain your answer so I understand.
Question 3
DR Depreciation Expense 1,500
CR
To record depreciation on trucks for the year. The trucks cost $30,000 and have no salvage. They are being
Question options:
1) Entry is correct
2) DR Accumulated Depreciation 1,500
CR Depreciation Expense 1,500
3)DR Depreciation Expense 1,500
CR Truck 1,500
4) DR Depreciation Expense 5,000
CR Accumulated Depreciation 5,000
Question 4
DR Interest Revenue 730
CR Interest Receivable 730
To record one year’s interest on a loan to an officer of the company. The loan was for $10,000 at 7% annual interest.
Question options:
1) Entry is correct
2) DR Interest Revenue 10,000
CR Interest Receivable 10,000
3) DR Interest Receivable 730
CR Interest Revenue 730
4) DR Interest Receivable 700
CR Interest Revenue 700
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