Final answer:
When a company pays $1,760 in cash for utilities, the transaction is recorded with a debit to Utilities Expense and a credit to Cash in the company's accounting records.
Step-by-step explanation:
When a company pays utilities of $1,760 in cash, the transaction is recorded in the accounting records with a debit to the Utilities Expense account and a credit to the Cash account. This reflects the company's increase in expenses for the services received (electricity, gas, water, etc.) and the decrease in its cash balance.
The accounting entry for paying utilities in cash would typically look like this:
Debit: Utilities Expense $1,760
Credit: Cash $1,760
This journal entry adheres to the double-entry accounting system, where each transaction is entered twice to keep the accounting equation (Assets = Liabilities + Owner's Equity) in balance.