A company bills customers for services provided. The company records this transaction with a:

• Debit to Cash
• Debit to Retained Earnings
• Credit to Accounts Payable
• Credit to Service Revenue

Callahan Corporation provides services to customers on account, $900. How would this transaction be recorded?

• Debit Accounts Payable $900, credit Service Revenue $900
• Debit Service Revenue $900, credit Accounts Payable $900
• Debit Accounts Receivable $900, credit Service Revenue $900
• Debit Service Revenue $900, credit Accounts Receivable $900

A company pays cash for utilities. The company records this transaction with a:

• Credit to Accounts Payable
• Credit to Accounts Receivable
• Credit to Cash
• Credit to Retained Earnings

Livingston Company pays utilities of $2,500 in cash. How would this transaction be recorded?

• Debit Accounts Payable $2,500, credit Cash $2,500
• Debit Cash $2,500, credit Retained Earnings $2,500
• Debit Cash $2,500, credit Utilities Expense $2,500
• Debit Utilities Expense $2,500, credit Cash $2,500

In a journal entry, there are two amount columns: the left-hand column is for debits, and the right-hand column is for credits.

True or False

In a journal entry, the account to be credited is listed on the first line.

True or False

In preparing journal entries, it is acceptable for the amount of total debits to be higher than the amount of total credits.

True or False

Answer rating: 100% (QA)

Credit to Service Revenue Debit Accounts Receivable 900 credit Service Revenue 900 Credit to Cash De... View the full answer