Specter Consulting purchased $7,000 of supplies and paid cash immediately. Which of the following general journal entries will Specter Consulting make to record this transaction? Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.
A) $\begin{array}{|l|r|l|}
\hline \text { Accounts Payable } & 7,000 & \
\hline \text { Supplies } & & 7,000 \
\hline
\end{array}$
B) $\begin{array}{|l|r|r|}
\hline \text { Cash } & 7,000 & \
\hline \text { Supplies } & & 7,000 \
\hline
\end{array}$
C) $\begin{array}{|l|l|l|}
\hline \text { Supplies } & 7,000 & \
\hline \text { Cash } & & 7,000 \
\hline
\end{array}$
D) $\begin{array}{|l|r|r|}
\hline \text { Supplies } & 7,000 & \
\hline \text { Accounts Payable } & & 7,000 \
\hline
\end{array}$
E) $\begin{array}{|l|l|l|}
\hline \text { Supplies Expense } & 7,000 & \
\hline \text { Accounts Payable } & & 7,000 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

Specter Consulting paid cash for supplies, so the correct entry is to debit Supplies (an asset account) and credit Cash (another asset account) to reflect the decrease in cash and increase in supplies.

Specter Consulting Purchased $7,000 of Supplies and Paid Cash Immediately Accounts Payable 7,000 Supplies 7,000\begin{array}{|l|r|l|}\hline \text { Accounts Payable } & 7,000 & \\\hline \text { Supplies } & & 7,000 \\\hline\end{array} Accounts Payable Supplies ​7,000​7,000​​

Specter Consulting Purchased $7,000 of Supplies and Paid Cash Immediately $\begin{array}{|l|r|l|}\hline \text { Accounts Payable } & 7,000 & \\\hline \text { Supplies } & & 7,000 \\\hline\end{array}$