An invoice from a painter for work completed on the office was received. The payment is due next month. The journal entry is:
A) DR Accounts payable
CR Repairs and maintenance expense
B) DR Accounts payable
CR Prepaid expenses
C) DR Repairs and maintenance expense
CR Accounts payable
D) No entry is required at this stage

Question

Quizplus · Accepted Answer

When an invoice is received, it represents an incurred expense even though payment is not yet due. Therefore, the appropriate journal entry is to debit the expense account and credit the accounts payable account. Choice C correctly reflects this by debiting Repairs and maintenance expense and crediting Accounts payable. Choice A is incorrect because it mistakenly debits Accounts payable instead of Repairs and maintenance expense. Choice B is incorrect because prepaid expenses are paid in advance and not recorded until the expense is incurred. Choice D is incorrect because an entry is required to record the expense and liability.

An Invoice from a Painter for Work Completed on the Office