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

question 201

Multiple Choice

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) \(\begin{array}{|l|l|l|}
• \hline \text { Supplies Expense } & 7,000 & \\
• \hline \text { Accounts Payable } & & 7,000 \\
• \hline
• \end{array}\)

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Definitions:

Team Incentives

Rewards or benefits given to a group of employees for achieving specific goals or performance targets.

Performance Measures

Metrics used to assess the efficiency, effectiveness, and quality of an employee's or organization's work.

Payout Formula

A predefined method or equation used to calculate the amount to be disbursed to individuals or entities, often used in financial contexts like investments or insurance.

Stock Purchase

The act of buying shares in a company, which represents a portion of ownership in the corporation.