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21. A company paid $800,000 for property that includes a warehouse and the 10-acre parcel of land. The land's market value is approximately 20% of the total market value. Which of the following should be included in the entry to record the transaction? Debit Land $160,000, debit Warehouse $640,000 Debit Property, Plant and Equipment $800,000 Debit Warehouse $800,000 t balance? Accumulated Depreciation Depreciation Expense Both Accumulated Depreciation and Depreciation record it Expense Neither Accumulated Depreciation nor Depreciation Expense 23. In which general ledger account should a company record its written promise to repay a lender for the amount that it had borrowed? Accounts Payable Accrued Expenses Payable Notes Payable unts Payable? 24. Which type of balance would you expect in Accounts Payable? Debit balance Credit balance 25. Which of the following account's normal balance is reduced with a debit entry? Accounts Payable Accounts Receivable Prepaid Insurance uld the interest that will beconme ccounting neriod? 27. Should the sales tax collected by a retailer be recorded as an expense or a liability? Expense Liability 28. Should the principal portion of a mortgage loan payment be recorded as a debit or credit to Mortgage Loarn Payable? Credit 29. Which of the following will decrease the normal balance in the account Wages Payable? Debit Credit 30. What type of balance would you expect to find in the account Unearned Revenues or Deferred Revenues? Debit balance Credit balance 32. To record a sole proprietor's withdrawal of business cash for his or her personal use, should the owner's drawing account be debited or credited? Credited 33. Will the balance in the account Common Stock normally be a debit or credit balance? Debit balance Credit balance 34. Do revenue accounts normally have credit balances and will revenues also cause an increase in owner's (or stockholders') equity? Yes No 35. When a customer takes a legitimate early payment discount, will the company record the customer's discount as a debit or credit in the account Sales Discounts? Delait Credit 36. Typically, would you debit or credit a general ledger expense account? Debit Credit 37. The amount spent to restore a machine to its former operating condition should be debited to which account? Accumulated Depreciation Equipment Repairs & Maintenance Expense ces? 38. Which of the following will likely have debit balances? Assets and revenues Assets and expenses Liabilities and revenues Liabilities and expenses ich of the 39. The words "debit" and "credit" will appear on which of the following? Balance sheet Income statement Trial balance as completely omitt 40. Will a trial balance indicate that a journal entry was completely omitted in the current period? Yes No

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