Excel Home bought painting equipment on account for $5,000. The entry would include:
A) debit to Supplies Expense, $5,000; credit to Cash, $5,000.
B) debit to Equipment, $5,000; credit to Cash, $5,000.
C) debit to Equipment, $5,000; credit to Accounts Payable, $5,000.
D) debit to Supplies Expense, $5,000; credit to Accounts Payable, $5,000.

Question

Quizplus · Accepted Answer

The correct entry for purchasing equipment on account (meaning it will be paid for later) is to debit the Equipment account to record the asset's acquisition and credit Accounts Payable to reflect the liability incurred from the purchase.

Excel Home Bought Painting Equipment on Account for $5,000