Question

question 8
5 points
heather company received its current utility bill for $500 and immediately paid it. the journal entry to record this transaction is
a debit utility expense, $500; credit accounts payable, $500.
b debit cash, $500; credit utility expense, $500.
c debit utility expense, $500; credit cash, $500.
d debit accounts payable, $500; credit utility expense, $500.

Explanation:

When a company pays its utility bill immediately, utility expense increases (debited as expenses have a normal debit balance) and cash decreases (credited as assets have a normal debit balance).

Answer:

C. Debit utility expense, $500; credit cash, $500.