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

question 108

Multiple Choice

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.

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Definitions:

Standard of Care

A level of competence, diligence, and care that is expected of a professional or individual in a specific situation or industry.

Bailee's Right

The rights afforded to a person (the bailee) who temporarily possesses the personal property of another (the bailor), often including the right to use the property under agreed conditions.

Ski Storage

A specific area or facility designed for the purpose of safely storing skis when they are not in use, often found at ski resorts or lodges.

Bailment Completed

The conclusion of a bailment arrangement, where personal property temporarily entrusted to another is returned to its owner or legally disposed of.