On December 31, Carmack Company Received a $215 Utility Bill

Multiple Choice

On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:

A) Debit Accounts Payable $215; credit Utilities Expense $215.
B) Debit Prepaid Utilities $215; credit Accounts Payable $215.
C) Debit Prepaid Utilities $215; credit Cash $215.
D) Debit Utilities Expense $215; credit Accounts Payable $215.
E) Debit Utilities Expense $215; credit Prepaid Utilities $215.