Question

Record the following transactions.
1. Pay employee salaries of $600 by issuing checks.
2. Purchase computer equipment of $1,000 using a credit card.
3. Pay for maintenance of $400 for a company vehicle using a debit card.

Answer 1

Answer:

1. Dr Salaries expense $600

Cr Bank $600

2. Dr Computer equipment $1,000

Cr Accounts payable $1,000

3. Dr Maintenance expense 400

Cr Bank 400

Explanation:

Preparation of the journal entries

1. Dr Salaries expense $600

Cr Bank $600

(Being To record the salaries expense paid)

2. Dr Computer equipment $1,000

Cr Accounts payable $1,000

(Being To record purchase of computer equipment)

3. Dr Maintenance expense 400

Cr Bank 400

(Being To record maintenance expense)