What does the following journal entry indicate? Legal Expense..................2,900
Cash...............................2,900

A)$2,900 cash is due to an attorney.
B)A sum of $2,900 was received from attorney in advance.
C)$2,900 cash is due from an attorney.
D)An attorney was paid $2,900 in cash.

Question

What does the following journal entry indicate? Legal Expense..................2,900
Cash...............................2,900
​
A)$2,900 cash is due to an attorney.
B)A sum of $2,900 was received from attorney in advance.
C)$2,900 cash is due from an attorney.
D)An attorney was paid $2,900 in cash.

Quizplus · Accepted Answer

The entry indicates that $2,900 cash was paid to an attorney as legal expense. Therefore, option D is the correct answer.

What Does the Following Journal Entry Indicate? Legal Expense