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Rocky Industries; Wisconsin Rentals; Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general entries will RH Consulting make to record this transaction?

1. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a
A. Debit to Telephone expense for $300
B. Credit to Accounts Payable for $300.
C. Debit to Cash for $300
D. Credit to Telephone Expense for $300
E. Debit to Accounts Payable for $300

2. Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a:
A. Debit to Accounts Payable
B. Debit to Accounts Receivable
C. Credit to Cash
D. Credit to Accounts Payable
E. Credit to Wisconsin Rentals, Capital.

3. Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general entries will RH Consulting make to record this transaction?
A.
Assets 200,000
Robert Haddon, Capital 200,000

B.
Cash to Land 200,000
Robert Haddon, Capital 200,000

C.
Cash 70,000
Land 130,000
Robert Haddon, Capital 200,000

D.
Robert Haddon, Capital 200,000
Cash 70.000
Land 130,000

E.
Robert Haddon, Capital 200,000
Assets 200,000

4. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balances in the Cash account at the beginning of September?
A. $0
B. A $4300 debit balance
C. A $4300 credit balance
D. A $5700 debit balance
E. A $5700 credit balance

Solution Preview

1. A. Debit to Telephone expense for $300

2. D. Credit to ...

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