11. Mercedes, Inc. recorded the following journal entry on July 2. Cash 3,665 Un
ID: 2547078 • Letter: 1
Question
11. Mercedes, Inc. recorded the following journal entry on July 2. Cash 3,665 Unearned Revenue 3,665 From the journal entry, identify the transaction on July 2: A) Mercedes, Inc. purchased goods worth $3,665 and signed a one-year note for the same. B) Mercedes, Inc. received $3,665 from Sandra for services to be performed in a later period. C) Mercedes, Inc. sold goods for $3,665 cash. D) Mercedes, Inc. paid $3,665 for services to be received at a later date.
12. For each financial event, identify which specific account (Accounts Payable, Cash, Prepaid Rent, etc.) is debited and which specific account is credited. Financial Event Debit Credit Received cash from customer to pay on their outstanding account Paid dividends to stockholders Replenished office supplies on account Borrowed cash from bank for business use and signed a note Accrued employees’ salary expense at month end Received a bill for utilities to be paid next month Performed services on account Paid cash for 3 months rent in advance Recognized one month’s rent Borrowed cash from bank for business use and signed a note
Explanation / Answer
Q11. Answer is B. Mercedes received $3665 from Santa for services to be performed in later years. Q12. Transactions Account Account Debited Credited Received cash from customer on outstanding amount Cash Accounts recievable Dividend paid to stockholder Dividend Cash Replinished supplies on account Supplies Accounts Payable Borrowed cash from bank against notes Cash Notes payable Accrues employees salary Salaries Expense Salaries Payable Received a bill for utility Utilities expense Utilities payable Peformed services on account Accounts receivable Service revenue Paid cash for 3 months rent in advance Prepaid rent Cash Recognized one month rent Rent expense Prepaid rent Borrowed from bank and signed a note Cash Notes payable
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