1. Prepare general journal entries for the following transaction
of Valdez Services.
a. The company paid $15,000 cash for payment on a 16-month-old liability for office supplies.
b. The company paid $1,300 cash for the just completed two-week salary of the receptionist.
c. The company paid $38,000 cash for equipment purchased.
d. The company paid $500 cash for this month’s utilities.
e. Owner (B. Valdez) withdrew $4,800 cash from the company for personal use.
2. Transactions a, c, and e did not record an expense. Match
each transaction(a, c, and e) with one of
the following reasons for not recording an expense.
__________This transaction decreased assets in settlement of a previously existing liability (equity did
not change). Cash payment does not mean the same using up assets (expense is recorded when assets
___________This transaction involves the purchase of an assets.
The form of the company’s assets
changed, but total assets did not (and neither did equity).
_________This transaction is a distribution to the owner. Even though equity decreased, that decrease
did not occur in the process of providing goods or services to customers.
plz solve ASAP
|e||B. Valdez, Withdrawals||4800|
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