Question

Paul's Landscaping purchased $500 of office supplies on credit. The company's policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Paul's Landscaping make to record this transaction? 34) A) Debit Office supplies expense, $500; credit Cash, $500. ) Debit Cash, $500; credit Office supplies, $500 C) Debit Office supplies, $500; credit Accounts payable, $500 D) Debit Office supplies, $500; credit Cash, $500 E) Debit Accounts payable, $500; credit Office supplies, $500

Answer 1

Answer:

C) Debit Office supplies, $500; credit Accounts payable, $500

Explanation:

The journal entry is as follows:

Office supplies A/c Dr $500

      To Account payable A/c $500

(Being the office supplies are purchase on credit is recorded)

Since the office supplies are purchased so we debited the office supplies that increase the assets and credited the account payable as it purchase on credit basis plus the liabilities are also increased