Question

Russell Co. received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Russell Co. make to record the receipt of the bill?

Answer 1

The general journal entries that  Russell Co. will  make to record the receipt of the bill is (a).Utilities Expense Accounts Payable

Explanation:

Since Russell Co, has received the $400 utility bill for the current month's electricity, which is not due until the end of the next month which is when they intend to pay it,

The general Journal entry which Russell Co. will make to record the receipt of the bill, is to:

Debit - Utilities Expense..........$400

Credit  -  Accounts Payable ...........$400

Then when the expense is paid in the future

Debit -Accounts Payable ..........$400

Credit - Cash............................................$400