1.

Yellow company had a balance of $34,000 in Accounts Payable at the

beginning of June, and purchased $100,000 of merchandise on account
during the month → This means that the company hasn’t paid; they
owned the merchandise $100,000. At the end of June, Yellow's accounts
Payable balance was $31,000. What amount did Yellow pay on account
during June?

→ 100,000 + 34,000 - 31,000 = $103,000

2. A transaction that includes a debit to an expense and a credit to a

liability indicates that:
→ Cash decreased, expense increased; liability increased.

3. Which of the following statements is true of expenses? (Take notes:

Stockholders’ equity = owners’ equity)

a. Expenses increase stockholders' equity, so an expense account's normal balance

is a credit balance.
b. Expenses decrease stockholders' equity, so an expense account's normal balance
is a credit balance.
c. Expenses increase stockholders' equity, so an expense account's normal balance
is a debit balance.
d. Expenses decrease stockholders' equity, so an expense account's normal
balance is a debit balance.

4. The purchase of equipment, involving a cash down payment and a

promise to pay the balance in the future, includes: (Cash down payment
= đặt cọc)

→ A credit to Cash and a credit to Accounts Payable

5. The Salaries Payable account is a(n) ________.

a) liability account with a normal debit balance

b) asset account with a normal debit balance
c) liability account with a normal credit balance
d) asset account with a normal credit balance

6. The entry to record the purchase of supplies on account includes a

credit to:
→ Debits supplies, credit Account Payable.

7. An owner makes an investment of cash into the business and receives

shares of stock. This transaction is recorded as a:

→ debit to Cash and a credit to Common Stock. (Người chủ đầu tư vào cty và nhận
đc cổ phần → Tiền cty tăng, cổ phần tăng)

8. Which accounts are increased by debits?

a) Salaries Expense and Common Stock. (Common Stock is owner’s equity →

Credit balance)

b) Accounts Receivable and Utilities Expense

c) Cash and Accounts Payable

d) Accounts Payable and Service Revenue

9. Which of the following transactions includes a credit to cash?

A. the collection of cash from an accounts receivable

B. the purchase of supplies on account (Debit supplies, credit account payable)

C. receipt of cash from a customer when service is provided

D. the payment of an accounts payable

10. Which of the following items would NOT be included in the journal entry
for a transaction?

A. the date the transaction occurred

B. the names of the employees involved in recording the transaction

C. the titles of the accounts debited

D. the dollar amount of the transaction

11. The Brownstone, capital account for Joe Brownstone, owner of

Brownstone company, had the following transactions for November: An
 additional capital contribution of $26,000 on November 1 and an
additional capital contribution of $26,000 on November 15. Assuming a
beginning balance in Brownstone, Capital Account was $16,000, what is
the balance in Brownstone, Capital Account as of November 15?

A $80,000 Debit

B. $80.000 Credit

c. $68.000 Debit

D. $68,000 Credit

12. Two employees worked one week and were paid salaries of $2500. The
journal entry would:

A) debit Cash for $2,500 and credit Salaries Payable for $2,500.

B) debit Cash for $2,500 and credit Salary Expense for $2,500.

C) debit Accounts Payable for $2,500 and credit Salary Payable for $2,500.

D) debit Salary Expense for $2,500 and credit Cash for $2,500.

13. A business paid $2500 on account. The journal entry would: (Payment

on account = Trả góp)

A) debit Accounts Receivable for $2,500 and credit Revenue for $2,500.

B) debit Accounts Payable for $2,500 and credit Cash for $2,500.

C) debit Cash for $2,500 and credit Retained Earnings for $2,500.
D) debit Cash for $2,500 and credit Accounts Payable for $2,500.

14. Prepaid Rent is an ________ account and has a normal ________

balance.

→ A current asset account and debit balance.

15. Decreases in stockholders' equity that result from the cost of operating

the business are:

A) assets. B) revenues. C) expenses. D) liabilities

Revenues: are increases in stockholders equity that result from delivering goods or

services to customers. (Income Statement)

Expenses: are decreases in stockholders equity due to the cost of operating a

business (Income Statement)

Common Stock and Retained Earnings: increases stockholders equity (Statement of

Retained Earnings)

Dividends: decreases stockholders equity. (Statement of Retained Earnings)