Question

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

Answer 1

The general journal entries for Valdez Services involve recording the payment of accounts payable, salaries, equipment purchase, utilities, and owner's withdrawal, with corresponding debits to expense or draw accounts and credits to cash.

Step-by-step explanation:

To prepare the general journal entries for Valdez Services from the transactions provided, each financial event needs to be recorded with the appropriate debits and credits. Below are the proper journal entries:

• For the payment of the account payable for office supplies: Debit Accounts Payable $2,000 and Credit Cash $2,000.
• For the salary paid to the receptionist: Debit Salaries Expense $1,200 and Credit Cash $1,200.
• For the purchase of equipment: Debit Equipment $39,000 and Credit Cash $39,000.
• For the payment of this month's utilities: Debit Utility Expense $800 and Credit Cash $800.
• For the owner's withdrawal: Debit Owner's Draw $4,500 and Credit Cash $4,500.

All these transactions reflect how cash is leaving the business and accordingly decrease the Cash account, while various other accounts are adjusted based on the nature of each transaction.

Answer 2

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

Step-by-step 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.