To determine Record the journal entries for the transactions that are related to expenses. Explanation Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for generating revenues are rent expense, depreciation expense, general and administrative expenses, selling expenses, and utilities expense. Journalize the given transactions: e. Record the journal entry for providing bowling merchandise inventory. Date Accounts title and explanation Ref. Debit ($) Credit ($) Cost of goods sold(+E) (-SE) 680 Inventory (-A) 680 (To record the journal entry for providing bowling merchandise inventory) Table (1) Cost of goods sold is an expense account which is a component of stockholders’ equity . There is an increase in the expense account which decreases the stockholders’ equity account. Hence, debit cost of goods sold account with $680. Inventory is an asset. There is a decrease in the asset. Hence, credit inventory account with $680. f. Record the journal entry for payment of electricity bill. Date Accounts title and explanation Ref. Debit ($) Credit ($) Accounts payable (-L) 500 Cash (-A) 500 (To record the payment of electricity bill) Table (2) Accounts payable is a liability. There is a decrease in the liability. Hence, debit accounts payable account with $500. Cash is an asset. There is a decrease in the asset. Hence, credit cash account with $500. g. Record the journal entry for payment of wages to employees. Date Accounts title and explanation Ref. Debit ($) Credit ($) Wages expenses (+E) (-SE) 3,600 Cash (-A) 3,600 (To record the wage expenses) Table (3) Wages expenses are an expense account which is a component of stockholders’ equity. There is an increase in the expense account which decreases the stockholders’ equity account. Hence, debit wages expenses account with $3,600. Cash is an asset. There is a decrease in the asset. Hence, credit Cash account with $3,600. h. Record the journal entry for purchase of insurance for coverage from July 1 to October 1...

10th Edition

ISBN: 9781266449512

Author: Libby

Publisher: MCG

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Chapter 3, Problem 6ME

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Record the journal entries for the transactions that are related to expenses.

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