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Problem 1: Paul's Landscaping purchased $660 of office supplies on credit. The company's policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Paul's Landscaping make to record this transaction?
Multiple Choice
Option 1: Debit Office supplies expense, $660; credit Cash, $660.
Option 2: Debit Cash, $660; credit Office supplies, $660.
Option 3: Debit Office supplies, $660; credit Cash, $660.
Option 4: Debit Office supplies, $660; credit Accounts payable, $660.
Option 5: Debit Accounts payable, $660; credit Office supplies, $660.
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