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Question 2 Part A: If a company pays $700 in cash for equipment, an appropriate...

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Accounting

Question 2 Part A: If a company pays $700 in cash for equipment, an appropriate journal entry would be:

a debit Cash for $700 and credit Equipment for $700

b debit Equipment for $700 and credit Cash for $700

c debit Cash for $700 and debit Equipment for $700

d credit Cash for $700 and credit Equipment for $700

e None of the above

Part b: f a service is provided to a customer and the customer does not pay for the service immediately but is given a bill for $400, the journal entry for this transaction would include a ________.

a debit to Unearned Revenue for $400
b credit to Unearned Revenue for $400
c debit to Service Revenue for $400
d credit to Service Revenue for $400
e both B and C are true

Part c: The account that shows the amount a company owes to suppliers from whom the company has purchased goods or services that it has not yet paid for is ________.

a Accounts Receivable
b Inventory
c Accounts Payable
d Unearned Revenue
e None of the above

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