On March 10, One Eleven Music Studio purchases a new student drum kit for $1,500 and receives

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On March 10, One Eleven Music Studio purchases a new student drum kit for $1,500 and receives an invoice from Pearl to be paid within 30 days. The following entry is booked:

a. Debit Equipment 1,500 and credit Accounts Payable 1,500

b. Debit Supplies 1,500 and credit Accounts Payable 1,500

c. Debit Asset 1,500 and credit Cash 1,500

d. Credit Accounts Payable $1,500 and credit Supplies 1,500

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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