To record the electricity expenses paid for $450 in cash, following is the entry:Debit Electricity expenses for $450Credit Cash for $450
Question
To record the electricity expenses paid for $450 in cash, following is the entry:
- Debit Electricity expenses for $450
- Credit Cash for $450
Solution
Yes, you are correct. In accounting, to record the electricity expenses paid for $450 in cash, the entry would be:
Debit: Electricity expenses for 450
This is because when you pay for an expense, the expense account (Electricity expenses) is debited, indicating an increase in expenses. On the other hand, the cash account is credited, indicating a decrease in your cash balance. This follows the basic accounting equation where Assets = Liabilities + Equity. In this case, your cash (an asset) decreases and your expenses (which reduce equity) increase.
Similar Questions
he journal entry to record the purchase on account of $950 of merchandise with freight of $45 prepaid by their supplier and added to the invoice is:
The journal entry to record the purchase of merchandise on account for $3,950 with freight of $245 prepaid by their supplier and added to the invoice is:
Expense should be recorded to recognize the cost of using long-lived assets, such as equipment, during the accounting period. (Enter one word per blank.)
The company purchases supplies for $2,500 for cash. The entry will be:Debit Supplies for $2,500Credit Cash for $2,500 True False
Recording in the books of account is known as ____________*1 pointAccountingAuditingCostingReporting
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.