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 23 transaction will include a credit of $430 to
A) Salaries Expense
B) Cash
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 23 transaction will include a credit of $430 to
A) Salaries Expense
B) Cash
C) Prepaid Expenses
D) Accounts Payable

Quizplus · Accepted Answer

The October 23 transaction involves receiving a bill for electricity that will be paid later, which means it is an incurred expense that has not yet been paid. Therefore, it should be recorded as an Accounts Payable (a liability account) to acknowledge the obligation to pay in the future.

Use the Following Five Transactions for Monaco & Associates, Inc