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

Question

Spencer Bruce

Business

26 September, 06:53

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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Wade Harrell · Answer 1

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.