Multiple Choice
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?
A) Debit Accounts payable, $500; credit Office supplies, $500.
B) 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 Office supplies expense, $500; credit Cash, $500.
Correct Answer:

Verified
Correct Answer:
Verified
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