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8 July, 18:16

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

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  1. 8 July, 19:04
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    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.
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