Write federal financial accounting exam questions for senior college students, with a theme around the Department of Rock and Roll. Make the questions scenarios that require student to provide the debit and credit general ledger accounts as answers.
1. The Department of Rock and Roll sells tickets to a Red Hot Chili Peppers concert for $4,000 cash. What would be the journal entry for this transaction?
Debit: Cash $4,000
Credit: Revenue $4,000
2. The Department of Rock and Roll purchases staging and instrument rental equipment for $2,500 cash. What would be the journal entry for this transaction?
Debit: Equipment $2,500
Credit: Cash $2,500
3. The Department of Rock and Roll issues a $500 refund on a ticket purchased to a Guns N' Roses concert. What would be the journal entry for this transaction?
Debit: Refunds $500
Credit: Accounts Receivable $500