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

Question

Quadir Hargrove · Accepted Answer

Final Answer : A, Explanation :  The adjusting entry needed on December 31 to accrue this expense is to debit Utilities Expense for $215 and credit Accounts Payable for $215 since carmack received utility bill for December that it will not pay until January 15.

Definitions

Learning Objectives

Learning Objectives

Related questions