Asked by Tamara Javelosa on Jun 03, 2024
Verified
On December 31,Carmack Company received a $215 utility bill for December that it will not pay until January 15.The adjusting entry needed on December 31 to accrue this expense is:
A) Debit Utilities Expense $215; credit Accounts Payable $215.
B) Debit Accounts Payable $215; credit Utilities Expense $215.
C) Debit Prepaid Utilities $215; credit Cash $215.
D) Debit Utilities Expense $215; credit Prepaid Utilities $215.
E) Debit Prepaid Utilities $215; credit Accounts Payable $215.
Utilities Expense
Costs incurred by a business for basic utilities, such as electricity, water, and gas, necessary for operations.
Adjusting Entry
An accounting journal entry made at the end of an accounting period to update the accounts for accruals and deferrals that have not been recorded during the period.
Accounts Payable
This term signifies the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.
- Familiarize oneself with the concept of adjusting entries and their essential function in creating financial statements.
Verified Answer
Learning Objectives
- Familiarize oneself with the concept of adjusting entries and their essential function in creating financial statements.
Related questions
The Unadjusted Trial Balance Columns of a Company's Work Sheet ...
Which of the Following Does Not Correctly Describe an Adjusting ...
Adjusting Entries Result in a Better Matching of Revenues and ...
Adjustments Are Necessary to Bring an Asset or Liability Account ...
Adjusting Entries Are Made After the Preparation of Financial Statements