How would I journalize these transactions?

1. Sold goods for $40,000 cash. The goods had cost $12,000 (would I need to make 2 journal entries for this then?)

2. Paid back part of a bank loan $4,000

3. Paid the utility company for services consumed $1,100 (My guess is debit cash for $1,100 and credit accounts payable for $1,100)?

4. Paid $8,100 wages for labor services consumed

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  • JKRB
    Lv 7
    6 years ago
    Favorite Answer

    1. Sold goods for $40,000 cash. The goods had cost $12,000 (would I need to make 2 journal entries for this then?)

    Dr Cash 40,000

    Cr Sales 40,000

    Dr Cost of Goods Sold 12,000

    Cr Merchandise Inventory 12,000

    *If you are using a periodic inventory system, you would only use the first entry.

    2. Paid back part of a bank loan $4,000

    Dr Notes Payable 4,000

    Cr Cash 4,000

    3. Paid the utility company for services consumed $1,100 (My guess is debit cash for $1,100 and credit accounts payable for $1,100)?

    Dr Utility Expense 1,100

    Cr Cash 1,100

    *You're PAYING the amount, so cash is credited.

    4. Paid $8,100 wages for labor services consumed

    Dr Wages Expense 8,100

    Cr Cash 8,100

    Source(s): Accounting Fan
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