Identify the correct option for the given transaction.

Question

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Answer 1

Question

Chapter 2, Problem 1MCQ

To determine

Identify the correct option for the given transaction.

Expert Solution & Answer

Answer to Problem 1MCQ

b. Debit to utility expenses for $700.

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Prepare a journal entry to record the payment incurred on utility expenses for the current period as follows:

Date	Account Title and Explanation	Post Ref	Debit ($)	Credit ($)
	Utility expenses		700
	Cash			700
	(To record the payment incurred on utility expenses.)

Table (1)

A Utility expense is an expense account and it is increased by $700. Expenses are the component of stockholder’s Equity and it decreases the value of equity. Therefore, debit utility expenses account with $700.
Cash is an asset, and it is decreased by $700. Therefore, credit cash with $700.

From the above explanation, it is clear that Option (a), (c), (d) and (e) are incorrect and only option (b) is correct.

Conclusion

Therefore, the correct option is Option (b).

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Answer 2

Question

Chapter 2, Problem 1MCQ

To determine

Identify the correct option for the given transaction.

Expert Solution & Answer

Answer to Problem 1MCQ

b. Debit to utility expenses for $700.

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Prepare a journal entry to record the payment incurred on utility expenses for the current period as follows:

Date	Account Title and Explanation	Post Ref	Debit ($)	Credit ($)
	Utility expenses		700
	Cash			700
	(To record the payment incurred on utility expenses.)

Table (1)

A Utility expense is an expense account and it is increased by $700. Expenses are the component of stockholder’s Equity and it decreases the value of equity. Therefore, debit utility expenses account with $700.
Cash is an asset, and it is decreased by $700. Therefore, credit cash with $700.

From the above explanation, it is clear that Option (a), (c), (d) and (e) are incorrect and only option (b) is correct.

Conclusion

Therefore, the correct option is Option (b).

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Answer 3

Question

Chapter 2, Problem 1MCQ

To determine

Identify the correct option for the given transaction.

Expert Solution & Answer

Answer to Problem 1MCQ

b. Debit to utility expenses for $700.

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Prepare a journal entry to record the payment incurred on utility expenses for the current period as follows:

Date	Account Title and Explanation	Post Ref	Debit ($)	Credit ($)
	Utility expenses		700
	Cash			700
	(To record the payment incurred on utility expenses.)

Table (1)

A Utility expense is an expense account and it is increased by $700. Expenses are the component of stockholder’s Equity and it decreases the value of equity. Therefore, debit utility expenses account with $700.
Cash is an asset, and it is decreased by $700. Therefore, credit cash with $700.

From the above explanation, it is clear that Option (a), (c), (d) and (e) are incorrect and only option (b) is correct.

Conclusion

Therefore, the correct option is Option (b).

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Answer 4

Question

Chapter 2, Problem 1MCQ

To determine

Identify the correct option for the given transaction.

Expert Solution & Answer

Answer to Problem 1MCQ

b. Debit to utility expenses for $700.

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Prepare a journal entry to record the payment incurred on utility expenses for the current period as follows:

Date	Account Title and Explanation	Post Ref	Debit ($)	Credit ($)
	Utility expenses		700
	Cash			700
	(To record the payment incurred on utility expenses.)

Table (1)

A Utility expense is an expense account and it is increased by $700. Expenses are the component of stockholder’s Equity and it decreases the value of equity. Therefore, debit utility expenses account with $700.
Cash is an asset, and it is decreased by $700. Therefore, credit cash with $700.

From the above explanation, it is clear that Option (a), (c), (d) and (e) are incorrect and only option (b) is correct.

Conclusion

Therefore, the correct option is Option (b).

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 1MCQ

To determine

Identify the correct option for the given transaction.

Expert Solution & Answer

Answer to Problem 1MCQ

b. Debit to utility expenses for $700.

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Prepare a journal entry to record the payment incurred on utility expenses for the current period as follows:

Date	Account Title and Explanation	Post Ref	Debit ($)	Credit ($)
	Utility expenses		700
	Cash			700
	(To record the payment incurred on utility expenses.)

Table (1)

A Utility expense is an expense account and it is increased by $700. Expenses are the component of stockholder’s Equity and it decreases the value of equity. Therefore, debit utility expenses account with $700.
Cash is an asset, and it is decreased by $700. Therefore, credit cash with $700.

From the above explanation, it is clear that Option (a), (c), (d) and (e) are incorrect and only option (b) is correct.

Conclusion

Therefore, the correct option is Option (b).

Answer 6

Chapter 2, Problem 1MCQ

To determine

Identify the correct option for the given transaction.

Expert Solution & Answer

Answer to Problem 1MCQ

b. Debit to utility expenses for $700.

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Prepare a journal entry to record the payment incurred on utility expenses for the current period as follows:

Date	Account Title and Explanation	Post Ref	Debit ($)	Credit ($)
	Utility expenses		700
	Cash			700
	(To record the payment incurred on utility expenses.)

Table (1)

A Utility expense is an expense account and it is increased by $700. Expenses are the component of stockholder’s Equity and it decreases the value of equity. Therefore, debit utility expenses account with $700.
Cash is an asset, and it is decreased by $700. Therefore, credit cash with $700.

From the above explanation, it is clear that Option (a), (c), (d) and (e) are incorrect and only option (b) is correct.

Conclusion

Therefore, the correct option is Option (b).

Answer 7

Chapter 2, Problem 1MCQ

To determine

Identify the correct option for the given transaction.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

b. Debit to utility expenses for $700.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Prepare a journal entry to record the payment incurred on utility expenses for the current period as follows:

Date	Account Title and Explanation	Post Ref	Debit ($)	Credit ($)
	Utility expenses		700
	Cash			700
	(To record the payment incurred on utility expenses.)

Table (1)

A Utility expense is an expense account and it is increased by $700. Expenses are the component of stockholder’s Equity and it decreases the value of equity. Therefore, debit utility expenses account with $700.
Cash is an asset, and it is decreased by $700. Therefore, credit cash with $700.

From the above explanation, it is clear that Option (a), (c), (d) and (e) are incorrect and only option (b) is correct.