Question

The following transactions are February 2013 activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. Swing Hard paid $4, 750 to its golf instructors for the month of February. Swing Hard paid $1, 750 for electricity used in the month of January. Swing Hard received an electricity bill for $800 for the month of February, to be paid in March. Prepare the journal entry for the above transaction (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

The journal entries are as follows:

(i) Wage Expense A/c Dr.

To Cash A/c

(To record the wages paid to the instructors)

(ii) Electricity expense A/c Dr. $1,750

To Accounts payable $1,750

(To record the electricity expense)

(iii) Accounts payable A/c Dr. $1,750

To Cash $1,750

(To record the payment of electricity expense)

(iv) Electricity expense A/c Dr. $800

To Accounts payable $800

(To record the electricity expense)