Question

Donna Jeffries started her business baking dog treats by investing cash of $1060 and during May, its first month of operations, Donna's Barkery had revenues of $3130 all of which was collected in cash. She paid her assistant $940 in cash and purchased $150 of supplies on account. The business paid cash dividends of $460. Assets Liabilities Stockholders' Equity Retained Earnings Accounts Payable Common Stock Cash Supplies + Revenue Expenses - Dividends Beg. Bal. 1060 Donna will record the purchase of the supplies by O increasing Supplies Expense and decreasing Accounts Payable. O increasing Supplies Expense and decreasing Supplies. O increasing Supplies and increasing Accounts Payable. O increasing Supplies and decreasing Cash.

Answer 1

Answer- Donna will record the purchase of the supplies by = increasing Supplies and increasing Accounts Payable.

Explanation- Purchase of supplies on account will effects the two corresponding accounts are as follows= Supplies will increase by $150 and account payable by $150.