Office Supply Purchasing
accounting help please?
I have 2 questions I already know the answer to them I just want someone to explain it to me
1) Office supplies purchased by Ari’s Alarm Service on account were returned. Which of the following entries for Ari’s Alarm Service records this transaction?
A) Cash, debit; Office Supplies, credit
B) Office Supplies, debit; Accounts Receivable, credit
C) Accounts Payable, debit; Office Supplies, credit
D) Office Supplies, debit; Accounts Payable, credit
I know the answer is C to that question could you please explain to me why?
2) Which of the following entries records the receipt of cash for two months rent? The cash was received in advance of providing service.
A) Prepaid Rent, debit; Rent Revenue, credit
B) Cash, debit; Unearned Rent, credit
C) Cash, debit; Prepaid Rent, credit
D) Cash, debit; Rent Expense credit
The answer to that question is B please explain to me why.
Thanks in advance
first one is C because you are returning the office supplies so you need to debit account payable which will reduce that account because you no longer have to pay for it. and credit office supplies which you no longer have will reduce that account.
2 is B because you received cash for the rent so that’s the debit which will increase the cash account and you debit unearned rent because the service wasn’t performed yet so it cant be recognized yet.
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