On August 13, 2016, Bonita Services Co. purchased office equipment for $1390 and office supplies of $230 on account. Which of the following journal entries is recorded correctly and in the standard format? a. Equipment 1390 Supplies 230 Accounts Payable 1620 b. Accounts Payable 1620 Equipment 1390 Supplies 230 c. Equipment 1390 Supplies 230 Accounts Payable 1620 d. Equipment 1390 Account Payable 1620 Supplies 230

a. Equipment 1390 Supplies 230 Accounts Payable 1620

Explanation:

Based on the information given if On August 13, 2016 the Company purchased office equipment for the amount of $1390 and office supplies of the amount of $230 on account. The journal entries that is recorded correctly and in the standard format will be :

Dr Equipment $1,390

Dr Supplies$230

Cr Accounts Payable $1,620

($1,390+$230)

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23