Russell Co, received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it Which of the following general Journal entries will Russell Co. make to record the receipt of the bill? a. Utilities Expense Accounts Payable 4001 b. Accounts Payable Utilities Expense O c. No journal entry is required. d. 400 Cash Utilities Expense Utilities Expense Accounts Receivable

Question

Nathalia Fisher

Business

31 October, 02:44

Russell Co, received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it Which of the following general Journal entries will Russell Co. make to record the receipt of the bill? a. Utilities Expense Accounts Payable 4001 b. Accounts Payable Utilities Expense O c. No journal entry is required. d. 400 Cash Utilities Expense Utilities Expense Accounts Receivable

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Answers (1)

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Tyson Koch · Answer 1

a. Utilities Expense Accounts Payable

Explanation:

Since Russell Co, has received the $400 utility bill for the current month's electricity, which is not due until the end of the next month which is when they intend to pay it,

The general Journal entry which Russell Co. will make to record the receipt of the bill, is to:

Debit - Utilities Expense ... $400

Credit - Accounts Payable ... $400

Then when the expense is paid in the future

Debit - Accounts Payable ... $400

Credit - Cash ... $400