Adjusting Entries: Accrued Expenses Video Lessons

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Problem: XYZ Company received a $215 bill for electricity for the month of September on September 30. The bill will be paid on its due date of October 10. The journal entry made by XYZ Company at September 30 would be: A. debit utilities expense $215 and credit utilities payable $215 B. debit utilities payable $215 and credit cash $215 C. debit utilities payable $215 and credit utilities expense $215 D. debit utilities expense $215 and credit cash $215 E. debit utilities expense $215 and credit prepaid utilities $215 F. XYZ Company would not make a journal entry on September 30 related to this transaction

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Problem Details

XYZ Company received a $215 bill for electricity for the month of September on September 30. The bill will be paid on its due date of October 10. The journal entry made by XYZ Company at September 30 would be:

A. debit utilities expense $215 and credit utilities payable $215

B. debit utilities payable $215 and credit cash $215

C. debit utilities payable $215 and credit utilities expense $215

D. debit utilities expense $215 and credit cash $215

E. debit utilities expense $215 and credit prepaid utilities $215

F. XYZ Company would not make a journal entry on September 30 related to this transaction

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Based on our data, we think this problem is relevant for Professor Hahn's class at OSU.