purchasing of office furniture for $3,200, on account, requires a credit to\na equipment.\nb cash.\nc…

purchasing of office furniture for $3,200, on account, requires a credit to\na equipment.\nb cash.\nc accounts payable.\nd common stock.

purchasing of office furniture for $3,200, on account, requires a credit to\na equipment.\nb cash.\nc accounts payable.\nd common stock.

Answer

Brief Explanations:

When purchasing on - account, it means the company owes money for the purchase. Accounts Payable is used to record amounts owed to suppliers for goods or services purchased on credit. Office furniture is an asset (Equipment), but the credit side of the journal entry for a purchase on - account is Accounts Payable. There is no cash payment made immediately (so not Cash), and it has nothing to do with Common Stock issuance.

Answer:

C. Accounts Payable