Please make the following journal entry. Would you debit “credit card expense” s

Question

Please make the following journal entry. Would you debit “credit card expense” since gas expense is not an option on the account name list?
Current Assets 10000 11000 12000 12100 13100 Cash Accounts Receivable Inventory-Guitars Inventory-Violins 39003Common Stock 39005 Retained Earnings 39007Dividends Supplies (string, pics, resin) 13200 Shipping Supplies Revenue 18000 18100 18200 Prepaid Rent Prepaid Insurance 40000 Sales Long-Term Assets Expenses Computer Equipment Accumulated Depreciation -Computer Equipment Delivery Van 15000 50000Cost of Goods Sold 60100 Legal Expense 60150Supplies Expense 60200 Shipping Supplies Expense 60300 60350 60400 60500 Advertising and Promotion 17000 15100 17100 Accumulated Insurance Expense Wages Expense Credit Card Expense Depreciation-Delivery Van Current Liabilities Accounts Payable 60550 60600 60650 60675 60700Interest Expense 60750 Expense Utility Expense Rent Expense Depreciation Expense-Computer Depreciation Expense-Van 21100 Note Payable- Wells Fargo Bank 21200No 23100 Wages Payable 23200 Interest Payable Note Payable- Office Mart Bank Service Fee Sales Tax Payable 23400Utilities Payable Long-Term Liabilities 27000 27100 Mortgage Payable Notes Payable

Explanation / Answer

Since GAS being in the nature of utilities, we need to debit the Utiilities expenses account name rather than the credit card expenses account name.

So Journal entry will:-

For recording the expense and Payable:-

Utilities expenses Dr $ 480

To Credit Card Payable $ 480

On Payment date :-

Credit card Payable Dr $ 480

To Cash $ 480.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.