Author Question: If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are ... (Read 198 times)

jrubin · **on:** Jul 5, 2018

If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate thejournal in which each of the following transactions should be recorded: (a) Investment of additional cash in the business by the owner. (b) Rendering of services for cash. (c) Rendering of services on account. (d) Receipt of cash on account from a customer. (e) Sale of office supplies for cash, at cost, to a neighboring business. (f) Adjustment to record supplies used at the end of the year. (g) Closing of drawing account at the end of the year.

Question 2

These transactions relate to Rudy's Garage, an auto repair shop.

Which two of the following six possibilities occurred as a result of each transaction - an asset increased, an asset decreased, a liability increased, a liability decreased, equity increased, or equity decreased:
a. Rudy bought 5 batteries on credit. He put the batteries in inventory
b. Rudy did a repair job for a customer, who paid in cash
c. In doing the repair job, Rudy used one of the batteries he had bought in transaction a

14vl19 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

(a) cash receipts journal
(b) cash receipts journal
(c) revenue journal
(d) cash receipts journal
(e) cash receipts journal
(f) general journal
(g) general journal

Answer to Question 2

a. assets +, liabilities +
b. assets +, equity +
c. assets -, equity -