Question

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
are used).

___________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

Answer 1

	General Journal	Debit	Credit
a	Accounts payable	15000
	Cash		15000
b	Salaries expense	1300
	Cash		1300
c	Equipment	38000
	Cash		38000
d	Utilities expense	500
	Cash		500
e	B. Valdez, Withdrawals	4800
	Cash		4800