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Problem 1: Meinac Corporation bought Furniture worth $40,000 on cash. What would be the journal entry to record this transaction?
A. Debit cash account; Credit furniture accountB. Debit Furniture Account; Credit Cash AccountC. Credit Capital Account, Credit cash accountD. Debit machinery account; credit Furniture account
Problem 2: Supplies purchased on credit. Which component of accounting equation increases or decreases?
A. Supplies decreases, Accounts payable increasesB. Supplies increases, Accounts payable decreasesC. Supplies increases, Accounts payable increasesD. Supplies decreases, Accounts payable decreases
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