Question

A business received the current​ month's utility bill for​ $2,125, and immediately paid it. Which journal...

A business received the current​ month's utility bill for​ $2,125, and immediately paid it. Which journal entry is​ prepared?

A.Debit Utilities Payable for​ $2,125 and credit Cash for​ $2,125.

B.Debit Utilities Expense for​ $2,125 and credit Cash for​ $2,125.

C.Debit Operating Expense for​ $2,125 and credit Accounts Payable for​ $2,125.

D.Debit Accounts Payable for​ $2,125 and credit Cash for​ $2,125.

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Answer #1

The entry would be

Utilities expense 2125
Cash 2125

Option B is the answer

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