chapter 9 practice activity Key

1.Read each of the following transactions. Determine the accounts to be debited and credited.
(A) Sold merchandise for $200 in cash plus sales tax of $14.
(B) Collected $3,400 from credit customers on account.
(C) Sold merchandise for $1,600 in cash plus sales tax of $112. There was a cash shortage of $6.

(A) Debit Cash; credit Sales and Sales Tax Payable.
(B) Debit Cash; credit Accounts Receivable
(C) Debit Cash and Cash Short or Over; credit Sales and Sales Tax Payable


Learning Objective: 1
Level: Easy
Price - 009 Cash... #56
Section: 1

2.Read each of the following transactions. Determine the accounts to be debited and credited.
(A) Issued a check for $10,600 to pay a $10,000 note plus interest of $600.
(B) Issued a check for $1,500 to pay the monthly rent.
(C) Issued a check for $7,840 to a creditor on account for an invoice of $8,000 less a cash discount of $160.

(A) Debit Notes Payable and Interest Expense; credit Cash
(B) Debit Rent Expense; credit Cash
(C) Debit Accounts Payable; credit Cash and Purchases Discounts


Learning Objective: 4
Level: Easy
Price - 009 Cash... #58
Section: 2

3.Record the following transactions for the month of April 20,-- on page 4 of a cash receipts journal. Total, prove, and rule the cash receipts journal as of April 30.



Learning Objective: 1
Learning Objective: 2
Level: Medium
Price - 009 Cash... #61
Section: 1

4.The cash receipts journal for Able Company is set forth below. Describe how the amounts would be posted to the general ledger accounts.

Dr. Cash $7,812; Cr. Accounts Receivable $1,150; Cr. Sales Tax Payable $651; cr. Sales $9,300; Cr. Supplies $30; Cr. Cash Over and Short $5; Cr. Notes Receivable $700; Cr. Interest Income $42


Learning Objective: 3
Level: Medium
Price - 009 Cash... #64
Section: 1

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LearningObjective:4 / 1
Level:Easy / 2
Level:Medium / 2
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