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

question 104

Short Answer

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

• A)
• \(\begin{array}{|l|r|r|}
• \hline \text { Supplies Expense } & 7,000 & \\
• \hline \text { Accounts Payable } & & 7,000 \\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|r|r|}
• \hline \text { Supplies } & 7,000 & \\
• \hline \text { Cash } & & 7,000 \\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|r|r|}
• \hline \text { Supplies } & 7,000 & \\
• \hline \text { Accounts Payable } & & 7,000 \\
• \hline
• \end{array}\)
• D)
• \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Payable } & 7,000 & \\
• \hline \text { Supplies } & & 7,000 \\
• \hline
• \end{array}\)
• \[\begin{array}{l}
• \text { E) }\\
• \begin{array} { | l | r | r | }
• \hline \text { Cash } & 7,000 & \\
• \hline \text { Supplies } & & 7,000 \\
• \hline
• \end{array}
• \end{array}\]

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a market.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a certain period of time.

Supply Curve

A graph that illustrates the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Transaction Costs

Expenses incurred when buying or selling goods and services, which can include broker fees, communication charges, or the cost of obtaining information.