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The following entry appears in Galloway Paints general journal on April 23,2018:

-This transaction involves:
A)Galloway's collection of $20,000 on an account payable.
B)Payment of $6,000 cash by Galloway.
C)A $26,000 overall increase in Galloway's assets.
D)Sale of inventory by Galloway for $26,000.

Question

[The following information applies to the questions displayed below.]
The following entry appears in Galloway Paints general journal on April 23,2018:
 
-This transaction involves:
A)Galloway's collection of $20,000 on an account payable. 
B)Payment of $6,000 cash by Galloway. 
C)A $26,000 overall increase in Galloway's assets. 
D)Sale of inventory by Galloway for $26,000.

Quizplus · Accepted Answer

The entry does not mention any increase in assets, account payable or sale of inventory. It only mentions payment of $6,000 cash, which is option B.

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