Use the following five transactions for Monaco & Associates, Inc.to answer the question(s). $$\begin{array}{lll}
october&1&\text { Bills are sent to clients for services provided in September in the amount of \$ 800 .}\
&9&\text { Dravo Co. delivers office fumiture (\$ 1,060) and office supplies (\$ 160) to }\
&&\text { Monaco leaving an invoice for \$ 1,220 .}\

&15&\text { Payment is made to Dravo Co. for the furniture and office supplies delivered }\
&&\text { on October 9.}\
&23&\text { A bill for \$ 430 for electricity for the month of September is received and will }\
&&\text { be paid on its due date in November.}\
&31&\text { Salaries of \$ 850 are paid to employees.}\
\end{array}$$
-See the transactions to Monaco & Associates. The journal entry to record the October 15 transaction will include a debit of $1,220 to
A) Salaries Expense
B) Salaries Payable
C) Prepaid Expenses
D) Accounts Payable

Question

Use the following five transactions for Monaco & Associates, Inc.to answer the question(s). $$\begin{array}{lll}
october&1&\text { Bills are sent to clients for services provided in September in the amount of  \$ 800 .}\
&9&\text { Dravo Co. delivers office fumiture (\$ 1,060) and office supplies  (\$ 160) to }\
&&\text { Monaco leaving an invoice for  \$ 1,220 .}\

&15&\text { Payment is made to Dravo Co. for the furniture and office supplies delivered }\
&&\text { on October 9.}\
&23&\text { A bill for  \$ 430 for electricity for the month of September is received and will }\
&&\text { be paid on its due date in November.}\
&31&\text { Salaries of  \$ 850  are paid to employees.}\
\end{array}$$
-See the transactions to Monaco & Associates. The journal entry to record the October 15 transaction will include a debit of $1,220 to
A) Salaries Expense
B) Salaries Payable
C) Prepaid Expenses
D) Accounts Payable

Quizplus · Accepted Answer

The October 15 transaction involves payment to Dravo Co. for the furniture and office supplies delivered on October 9. The initial transaction on October 9 would have created an accounts payable (a liability) for Monaco & Associates, Inc. Therefore, when the payment is made on October 15, the journal entry would include a debit to Accounts Payable to decrease the liability, reflecting that the debt to Dravo Co. has been settled.

Use the Following Five Transactions for Monaco & Associates, Inc