Page 83 - Accounting Principles (A Business Perspective)

2. Recording business transactions

Paid the utilities bill for December.

General Ledger
Utilities Expense
(Dr.) Acct. No. 511 (Cr)
2010
Dec. 150
29
Cash
(Dr.) Acct. No. 100 (Cr.)
2010 2010
Dec. 50,000 Dec. 40,000
1 1
Dec. 4,500 Dec. 2,400
7 1
Dec. 5,000 Dec. 1,200
15 1
Dec. 500 Dec. 1,400
26 17
Dec. 3,600
28
Dec. 29 150
Effects of transaction
An expense, utilities expense, increases (debited); and an asset, cash, decreases (credited) by USD 150.
Transaction 14: Dec. 30 Received a bill for gas and oil used in the trucks for December, $680.
General Journal

Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 Dec. 30 Gas and Oil Expense (-SE) 506 6 8 0
Accounts Payable (+L) 200 6 8 0
Received a bill for gas and oil used in the trucks for

December.

General Ledger
Gas and Oil Expense
(Dr.) Acct. No. 506 (Cr)
2010
Dec. 680
30
Accounts Payable
(Dr.) Acct. No. 200 (Cr.)
2010 2010
Dec. 1,400 Dec. 4 1,400
17
Dec.24 50
Dec. 30 680

Effects of transaction
An expense, gas and oil expense, increases (debited); and a liability, accounts payable, increases (credited) by
USD 680.

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