The proper journal entry to purchase a computer on account on January 2 to be utilized within the business would be:
A) Jan 2 Office Supplies 1,350 Accounts Payable 1,350
B) Jan 2 Office Equipment 1,350 Accounts Payable 1,350
C) Jan 2 Office Supplies 1,350 Accounts Receivable 1,350
D) Jan 2 Office Equipment 1,350 Accounts Receivable 1,350

Question

Quizplus · Accepted Answer

The journal entry should include the account being purchased (Office Equipment) and the account used to record the liability for the purchase (Accounts Payable). Option A uses the incorrect account (Office Supplies), while options C and D make reference to Accounts Receivable, which is not appropriate for a purchase made on account. Therefore, option B is the most suitable.

The Proper Journal Entry to Purchase a Computer on Account