Question

On August 30, JumpStart incurred the following expenses: Payment to the landlord for August rent, $2,300 Payment to Gas & Electric Company for August bill, $525 Payment of employee wages for the last half of August, $1,750 Payment of shopping center's parking lot cleaning fee, $275 Journalize these payments as one journal entry.

Answer 1

Answer:

Explanation:

The expenses would be debited and the cash would be credited as the cash is going out of pocket.

Date         Account title and explanation            Debit             Credit

30 August       Rent expense                                 $2300

                        Gas & Electric expense                  $525

                       Wages of an employee expense     $1750

                       Cleaning fee                                     $275

                                 Cash account                                               $4850

Thus, this entry would be passed by JumpStart on August 30.