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-   -   Intro to Accounting Question (https://www.askmehelpdesk.com/showthread.php?t=558827)

  • Mar 1, 2011, 10:51 AM
    mccoolr901
    Intro to Accounting Question
    Im in college, this is my first semester and I was just wondering. When you have an expense that has'nt been paid for what do you do? Does it go under the expense and the accounts payable?
  • Mar 1, 2011, 03:59 PM
    pready

    Yes, the jounal will be:
    Debit the appropriate expense account for the amount
    Credit Accounts Payable for the amount.

    When the bill is paid the journal entry will be:
    Debit Accounts Payable for the amount of payment
    Credit Cash for the amount of payment.

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