Asked by
Grace Durham
on Oct 16, 2024
Verified
Green Cleaning 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 Green Cleaning make to record this transaction?
A) Debit Office supplies expense,$500; credit Cash,$500.
B) Debit Cash,$500; credit Office supplies,$500.
C) Debit Office supplies,$500; credit Cash,$500.
D) Debit Office supplies,$500; credit Accounts payable,$500.
E) Debit Accounts payable,$500; credit Office supplies,$500.
Office Supplies
Various items and materials such as pens, paper, and files, used in offices for the purpose of maintaining smooth business operations.
General Journal
A basic accounting book or document used to record all the day-to-day financial transactions of a business.
Accounts Payable
Liabilities of a business that are due to be paid to creditors within a short period of time, typically less than one year.
- Invoke the rules of debit and credit for the precise recording of transactions.
- Learn the process of recording financial transactions via the double-entry bookkeeping system.
Verified Answer
AP
Learning Objectives
- Invoke the rules of debit and credit for the precise recording of transactions.
- Learn the process of recording financial transactions via the double-entry bookkeeping system.