Question

Following are the transactions for Valdez Services. The company paid $2,000 cash for payment on a 6-month-old account payable for office supplies. The company paid $1,200 cash for the just completed two-week salary of the receptionist. The company paid $39,000 cash for equipment purchased. The company paid $800 cash for this month’s utilities. Owner (B. Valdez) withdrew $4,500 cash from the company for personal use. 1. Prepare general journal entries for the above transactions of Valdez Services

Answer 1

Answer:

accounts payable   2,000 debit

               cash                     2,000 credit

salaries expense   1,200 debit

                 cash                     1,200 credit

Equipment           39,000 debit

               cash                    39,000 credit

utilities expense        800 debit

               cash                    800 credit

B-Valdez drawins    4,500 debit

              cash                   4,500 credit

Explanation:

In all cases the company is using cash. It is performing a cash disbursements thus we credited.

In the debit side we post what we receive or destination of the cash.

Like, equipment, salaries expense and so on.