Question 8:
On September 22, we purchased supplies on account for $1,150. What account would we credit when we journalize this entry?
- Supplies
- Cash
- Accounts Payable
- Supplies Expense

Question 9:
Which of the following types of accounts have a normal debit balance?
- Assets and Dividends
- Liabilities and Expenses
- Revenues and Liabilities
- Liabilities and Dividends

Question 10:
On December 31, we determined that $6,850 in revenue had been earned. We have not received any cash to date for this job and have not billed the client. What account would we credit when we record this adjusting entry in the general journal?
- Service Revenue
- Unearned Fees
- Accounts Receivable
- Retained Earnings

Question 11:
Our unearned revenue account had a credit balance of $5,000 before adjusting entries were recorded. On December 31, $2,000 in service revenue had been earned during the current year. What account and amount would we debit when we record this adjusting entry in the general journal?
- Unearned Revenue, $2,000
- Service Revenue, $2,000
- Unearned Revenue, $3,000
- Service Revenue, $3,000

Question 8: When journalizing the purchase of supplies on account, we need to perform a transaction in the accounting records.

We debit the 'Supplies' account because we are increasing our assets in terms of supplies.
We credit the 'Accounts Payable' account because we have incurred a liability by purchasing on credit.

Therefore, the correct account to credit is 'Accounts Payable'.
Question 9: Accounts with a normal debit balance typically include those that increase when debited and decrease when credited. These include:

Assets: Such as cash, accounts receivable, and inventory.
Dividends: Distributions to shareholders, which also increase with debits.

Thus, the types of accounts that have a normal debit balance are 'Assets and Dividends'.
Question 10: To record revenue that has been earned but not yet received or billed, we need an adjustment entry.

We credit 'Service Revenue' because revenue accounts increase with a credit.
We would debit 'Accounts Receivable' even though the question doesn't explicitly ask for it, since we expect eventual cash receipt. But as per the multiple-choice question, we're focusing on the credit part.

Therefore, the account to credit is 'Service Revenue'.
Question 11: To account for earned revenue from previously unearned revenue, we perform an adjusting entry.

We debit 'Unearned Revenue' to decrease the liability, showing that the service obligation has been fulfilled.
We credit 'Service Revenue' to increase the income earned account.

Since $2,000 of the service revenue was earned, the account to debit is 'Unearned Revenue' with an amount of $2,000.

Answered by MasonWilliamTurner | 2025-07-06