Question

Jonathan Company's journal shows a debit to supplies and a credit to accounts payable. This means that Jonathan:

Answer 1

Jonathan Company's accounting journal entry, with a debit to supplies and a credit to accounts payable, signifies a purchase of supplies on credit. This transaction reflects an increase in supplies and an increase in liabilities.

Step-by-step explanation:

When Jonathan Company's journal shows a debit to supplies and a credit to accounts payable, it indicates that the company has purchased supplies on credit. In accounting, a debit to the supplies account increases the supplies expense or asset, depending on how the company classifies supplies. Conversely, a credit to accounts payable signifies that the company has a liability to pay the supplier in the future. This transaction is an example of the double-entry accounting system where every transaction has a corresponding and opposite entry in another account.

Answer 2

When a journal entry shows a debit to supplies and a credit to accounts payable, it means that Jonathan Company purchased supplies on credit from a supplier.

Step-by-step explanation:

When a journal entry shows a debit to supplies and a credit to accounts payable, it indicates that Jonathan Company purchased supplies on credit from a supplier. The debit to supplies increases the supplies asset account, while the credit to accounts payable increases the liability owed to the supplier.