We know https://www.bookstime.com/ that expenses sit on the debit side. That means we’ll record interest expenses of $1,000. Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory accounting.

Bookkeeping Basics Quizzes

Watch transaction analysis accounting the video below each practice quiz to see further explanation on how to solve these accounting practice questions. B. Using up the asset prepaid rent is an expense. An increase to an expense is recorded with a debit. Using an asset is also a decrease to the asset which is recorded with a credit. We’ve gone through 15 journal entry examples and explained how each are prepared to help you learn the art of recording. By now you’d feel more confident in preparing journal entries.

Accounting Practice Quizzes

Remember, this will result in an increase in the debit side. On QuickBooks the right side, we have a single liability which is a loan from Anne at the bank for $9,000. The balance is made up of Owners Equity of $15,000. 31 Sales of delivery services on account amounted to $ 11,400. 17 Cash received for delivery services to date amounted to $ 1,800. 23 Cash collected from customers on account, $ 2,600.

Journal Entry for Depreciation

Knowing which account to debit and which to credit is crucial. If you wish to take an accounting quiz please do so by first choosing a quiz from the Popular Quiz list below. Note that there is no time limit to answer the questions, and you can have as many goes at answering each question as you like.

➢  Define asset, liability, and stockholders’ equity. Generally, interest on capital is an appropriation of profit, which means in case of loss, no interest is to be provided. Hence, debit the Profit and loss appropriation A/C and credit Interest on capital A/C at the time of transferring Interest on Capital. Amortization is the same as depreciation but is charged as an expense only on intangible assets. Example Step 1 – Electricity Expense of 1,000 is unpaid on the balance sheet date. The practice of allowing discounts to customers on goods purchased.

• Revenues are recorded with an increase when the revenue is earned this period; a good or service has been provided this period.
• These quizzes are a great way to practice accounting.
• Amortization is the same as depreciation but is charged as an expense only on intangible assets.
• Feb. 25 Received payment of $ 4,400 for remodeling a basement into a recreation room.

Journal Entry for Goods Returned

B. Accumulated depreciation is the account that is always credited when recording depreciation expense. This account is the total of all prior years’ depreciation expense. Accumulated depreciation is a contra asset account which means it is opposite of an asset. Assets increase with a debit, so accumulated depreciation is increased with a credit (opposite).

• This will help ensure you’re not taking too long to complete each question and will help you get used to doing exercises under exam settings.
• You choose the pink beetle with yellow polka dots and a big flower in the middle.
• When you make sales, you receive money in the BANK.
• My my goal is to help you pass your accounting class, so if you need help, reach out to me!
• Prepare a corrected trial balance as of 2010 December 31.

The cost of the policy, $ 800, was paid in cash. 8 Secured an order from a customer for laundry services of $ 7,000. The services are to be performed next month. 25 Laundry services were performed for customers who paid immediately, $ 22,000. 12 Performed delivery services for customers who promised to pay $ 27,000 at a later date.

• 31 Sales of delivery services on account amounted to $ 11,400.
• Drawings are goods or cash withdrawn by a proprietor for their personal use from the business.
• 31 Received an order for services at $ 12,000.
• Apr. 1 Cash of $ 500,000 was received for capital stock issued to the owners.
• We know that expenses sit on the debit side.
• Aug. 1 Received cash for capital stock issued to owners, $ 400,000.

Example Part 2 – 2,000 rent received in the previous month to be adjusted this month. Step 2 – Adjustment entry when the prepaid expense expires. Step 1 – At the time of paying an expense before the due date in cash. The term “prepaid expenses” refers to expenses that are paid before the actual due date. The term “outstanding expenses” refers to expenses that are unpaid after their due date. When a customer fails to repay the amount owed it is known as a bad debt.