A business received the current month's utility bill for $1625, and immediately paid it. Which journal entry is prepared?
A)Debit Accounts Payable for $1625 and credit Cash for $1625.
B)Debit Utilities Payable for $1625 and credit Cash for $1625.
C)Debit Utilities Expense for $1625 and credit Cash for $1625.
D)Debit Operating Expense for $1625 and credit Accounts Payable for $1625.

Question

Quizplus · Accepted Answer

The utility bill is an expense, so Utilities Expense is debited. Since it was paid immediately, Cash is credited.

A Business Received the Current Month's Utility Bill for $1625