The following transactions are July activities of Bills Extr

The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers. a. Bill\'s paid $1,500 to plumbers for repairing a broken pipe in the restrooms. b. Bill\'s paid $2,000 for the June electricity bill and received the July bill for $2,500, which will be paid in August. c. Bill\'s paid $5,475 to employees for work in July. Prepare journal entries to record the above transactions.. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.)

Solution

Accounting title and Explanation Debit Credit a) Repairs and Maintenance Expense 1500 Cash 1500 b) Electricity expense payable 2000 Cash 2000 (For payment of june electricity bill) Electricity Expense 2500 Electricity expense payable 2500 (Electricity expense payble for the month of july, to be paid in august) c) Salaries and Wages Expense 5475 Cash 5475