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20240620193828_66748534d3361_college_accounting_15e_slater_tb-113

The document presents two accounting scenarios involving journal entries for transactions. The first scenario involves Bill's Construction paying six months' insurance in advance, recorded as a debit to Prepaid Insurance and a credit to Cash. The second scenario details Sue's Book Review billing customers for editing fees, recorded as a debit to Accounts Receivable and a credit to Editing Fees.

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milkah mwaura
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4 views1 page

20240620193828_66748534d3361_college_accounting_15e_slater_tb-113

The document presents two accounting scenarios involving journal entries for transactions. The first scenario involves Bill's Construction paying six months' insurance in advance, recorded as a debit to Prepaid Insurance and a credit to Cash. The second scenario details Sue's Book Review billing customers for editing fees, recorded as a debit to Accounts Receivable and a credit to Editing Fees.

Uploaded by

milkah mwaura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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22) On July 1, Bill's Construction Paid Six Months' Insurance In Advance.

The Journal Entry To


Record This Transaction Is:
A) Debit Prepaid Insurance; Credit
Cash
B) Debit Insurance Expense; Credit Accounts
Payable
C) Debit Cash; Credit Prepaid
Insurance D) Debit Cash; Credit
Insurance Expense Answer: A
Diffic
ulty:1
LO: 3-1
AACSB: Analytical
Thinking
Learning Outcome: Analyze And Record Transactions And Their Effects On The Financial
Statements

23) Sue's Book Review Billed Customers $550 For Editing Fees. The Journal Entry To Record This
Transaction Is:
A) Accounts Receivable, Debit $550; Editing Fees, Credit
$550
B) Editing Fees, Debit $550; Sue, Capital, Credit
$550
C) Accounts Payable, Debit $550; Editing Fees, Credit
$550
D) Cash, Debit $550; Accounts Receivable, Credit
$550
Answer: A
Difficulty:1
LO: 3-1
AACSB: Analytical
Thinking
Learning Outcome: Analyze And Record Transactions And Their Effects On The Financial
Statements

8
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