On December 31 of the current year, Seo Dal Mi Company's bookkeeper made an entry debiting Supplies Expense and crediting Supplies on Hand for P126,000. The Supplies on Hand account had a P153,000 debit balance on January 1. The December 31, balance sheet showed Supplies on Hand of P114,000. Only one purchase of supplies was made during the month, on account. The entry for that purchase was A. debit Supplies on Hand, P87,000 and credit Cash, P87,000. B. debit Supplies Expense, P87,000 and credit Accounts Payable, P87,000. C. debit Supplies on Hand, P87,000 and credit Accounts Payable, P87,000. D. debit Supplies on Hand, P165,000 and credit Accounts Payable, P165,000.

On December 31 of the current year, Seo Dal Mi Company's bookkeeper made an entry debiting Supplies Expense and crediting Supplies on Hand for P126,000. The Supplies on Hand account had a P153,000 debit balance on January 1. The December 31, balance sheet showed Supplies on Hand of P114,000. Only one purchase of supplies was made during the month, on account. The entry for that purchase was A. debit Supplies on Hand, P87,000 and credit Cash, P87,000. B. debit Supplies Expense, P87,000 and credit Accounts Payable, P87,000. C. debit Supplies on Hand, P87,000 and credit Accounts Payable, P87,000. D. debit Supplies on Hand, P165,000 and credit Accounts Payable, P165,000.

Name: On December 31 of the current year, Seo Dal Mi Company's bookkeeper m
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Description: On December 31 of the current year, Seo Dal Mi Company's bookkeeper made an entry debitingl aSupplies Expense and crediting Supplies on Hand for P126,000. The Supplies on Hand account had aP153,000 debit balance on January 1. The December 31, balanc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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On December 31 of the current year, Seo Dal Mi Company's bookkeeper made an entry debiting
l a
Supplies Expense and crediting Supplies on Hand for P126,000. The Supplies on Hand account had a
P153,000 debit balance on January 1. The December 31, balance sheet showed Supplies on Hand of
P114,000. Only one purchase of supplies was made during the month, on account. The entry for that
purchase was
A. debit Supplies on Hand, P87,000 and credit Cash, P87,000.
B. debit Supplies Expense, P87,000 and credit Accounts Payable, P87,000.
C. debit Supplies on Hand, P87,000 and credit Accounts Payable, P87,000.
D. debit Supplies on Hand, P165,000 and credit Accounts Payable, P165,000.

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