Strayer ACC557 Midterm Exam (Part 1 & 2) 2015 version

Strayer ACC557 Midterm Exam (Part 1 & 2)



PART 1

Question

Question 1

Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to

pay the balance in 30 days. The journal entry to record this transaction would include a debit to

an asset account for $1,000, a credit to a liability account for $600. Which of the following

would be the correct way to complete the recording of the transaction?

a. Credit an asset account for $400.

b. Credit another liability account for $400.

c. Credit the retained earnings account for $400.

d. Debit the retained earnings account for $400.

Question 2

The first step in posting involves

a. entering in the appropriate ledger account the date, journal page, and debit amount

shown in the journal.

b. writing in the journal the account number to which the debit amount was posted.

c. writing in the journal the account number to which the credit amount was posted.

d. entering in the appropriate ledger account the date, journal page, and credit amount

shown in the journal.

Question 3

Credits