Unformatted text preview: that will have future economic benefit, on credit. Supplies is
an asset, buying on credit is incurring a liability.
Rules: Increases to assets are debited, increases to liabilities are credited.
Journal entry: Debit to Supplies, Credit to Accounts Payable
Jan 6 Office Supplies
Accounts Payable 4. Post to the general ledger: Cr.
150 Solution: (Assuming no adjusting entries are made (Ch. 3) the income statement would be $0,
because no transactions have occurred that affect revenue or expense accounts during the month of
For the balance sheet, remember the basic a...
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