Able Graphics Received a $400 Utility Bill for the Current $\begin{array}{|l|l|l|}\hline \text { No journal entry is required } & & \\\hline & & \\\hline\end{array}$

question 178

Short Answer

Able Graphics received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Able Graphics make to record this transaction?
A)
$\begin{array}{|l|l|l|}\hline \text { No journal entry is required } & & \\\hline & & \\\hline\end{array}$
B)
$\begin{array}{|l|r|r|}\hline \text { Utilities Expense } & 400 & \\\hline \text { Cash } & & 400 \\\hline\end{array}$
C)
$\begin{array}{|l|r|r|}\hline \text { Utilities Expense } & 400 & \\\hline \text { Accounts Payable } & & 400 \\\hline\end{array}$
D)
$\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 400 & \\\hline \text { Utilities Expense } & & 400 \\\hline\end{array}$
$$\begin{array}{l}\text { E) }\\\begin{array} { | l | r | r | } \hline \text { Cash } & 400 & \\\hline \text { Utilities Expense } & & 400 \\\hline\end{array}\end{array}$$

• A)
• \(\begin{array}{|l|l|l|}
• \hline \text { No journal entry is required } & & \\
• \hline & & \\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|r|r|}
• \hline \text { Utilities Expense } & 400 & \\
• \hline \text { Cash } & & 400 \\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|r|r|}
• \hline \text { Utilities Expense } & 400 & \\
• \hline \text { Accounts Payable } & & 400 \\
• \hline
• \end{array}\)
• D)
• \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Payable } & 400 & \\
• \hline \text { Utilities Expense } & & 400 \\
• \hline
• \end{array}\)
• \[\begin{array}{l}
• \text { E) }\\
• \begin{array} { | l | r | r | }
• \hline \text { Cash } & 400 & \\
• \hline \text { Utilities Expense } & & 400 \\
• \hline
• \end{array}
• \end{array}\]

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