Question

a company paid $1,000 cash for this months utilities. identify the general journal entry below that the company will make to record the transaction.

account title debit credit
cash 1,000
utilities expense 1,000

account title debit credit
accounts receivable 1,000
utilities expense 1,000

account title debit credit
cash 1,000
accounts payable 1,000

account title debit credit
utilities expense 1,000
accounts receivable 1,000

account title debit credit
utilities expense 1,000
cash 1,000

Explanation:

When a company pays for utilities in cash, it increases the Utilities Expense (debit) as expenses are debited when they increase. At the same time, it decreases the Cash account (credit) as cash is an asset and assets are credited when they decrease.

Answer:

Account Title | Debit | Credit
--- | --- | ---
Utilities Expense | 1,000 |
Cash | | 1,000