Questions: Chapter 2 Homework Question 1 - Chapter 2 Homework Trial Balance and Financial Statements The company purchased 1,000 of additional office supplies on credit. Note: Enter debits before credits. Date Account Title Debit Credit April 29 Office supplies 1,000 Accounts payable 1,000

The question involves recording a journal entry for a transaction where a company purchased $1,000 of additional office supplies on credit. Here's how to approach this:

1. Identify the Accounts Involved:

   • Office Supplies: This is an asset account that increases with the purchase of additional supplies.
   • Accounts Payable: This is a liability account that increases because the purchase was made on credit.

2. Determine the Nature of the Transaction:

   • Since office supplies are being acquired, the Office Supplies account will be debited.
   • Since the purchase is on credit, the Accounts Payable account will be credited.

3. Record the Journal Entry:

   • Debit the Office Supplies account for $1,000 to reflect the increase in assets.
   • Credit the Accounts Payable account for $1,000 to reflect the increase in liabilities.

The journal entry is as follows:

\[ \begin{array}{|c|l|c|c|} \hline \text{Date} & \multicolumn{1}{|c|}{\text{Account Title}} & \text{Debit} & \text{Credit} \\ \hline \text{April 29} & \text{Office Supplies} & 1,000 & \\ \hline & \text{Accounts Payable} & & 1,000 \\ \hline \end{array} \]

Summary: The transaction is correctly recorded by debiting the Office Supplies account and crediting the Accounts Payable account, each for $1,000. This reflects the increase in assets due to the purchase of supplies and the increase in liabilities due to the credit purchase.