Question

Use the following information. Pay employee salaries of $590 by issuing checks. Purchase computer equipment of $990 using a credit card. Pay for maintenance of $390 for a company vehicle using a debit card. Record the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Answer:

1.  Dr Salaries expense  590

                   Cr Bank              590

2. No journal entry is required

3. Dr Vehicle maintenance 390

                Cr   Bank                   390

Explanation:

1. Entry will be created because salaries are of companies employees.

2. In event 2 there is not mentioned of any company equipment purchase and mostly payment is done through checks in company not through credit cards.

3. This event is solely business event because it is clearly stated of company vehicle.