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ACC 211 FALL 2013 EXTRA CREDIT 20 POINTS DUE ON MONDAY 11/25/2013 Points will be given on correct answers only. For Question 1 & 2 you need to use scantron. Answers question no. 3 on separate paper. Question 1 Multiple Choice Journal Entries R. Sparks, an interior decorator, started a business by investing $10,000 cash. The business would record this transaction: Debit Cash $10,000, Credit Revenue $10,000 Debit Cash $10,000, Credit R. Sparks, Capital $10,000 Credit Cash $10,000, Debit R. Sparks, Capital $10,000 Credit Cash $10,000, Debit Revenue $10,000 R Sparks business purchases a used car for $6,000 cash. The business would record this transaction: Debit Car expense $6,000, Credit Cash $6,000 Debit Cash 6,000, Credit Car expense $6,000 Debit Assets: car $6,000, Credit Cash $6,000 Debit Cash $6,000, Credit Assets: car $6,000 R. Sparks business purchases a one year liability insurance policy effective immediately for $1,200 cash. The business would record this transaction: Debit Asset: Prepaid insurance $1,200, Credit cash $1,200 Debit Insurance expense $1,200, Credit cash $1,200 Debit Cash $1,200, Credit Prepaid Insurance $1,200 Debit Cash $1,200, Credit Insurance Expense $1,200 R. Sparks business purchases six months of supplies on account for $550. The business would record this transaction: Debit Supplies Expense $550, Credit Cash $550 Debit Supplies Expense $550, Credit Accounts Payable $550 Debit Asset: Supplies $550,
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