[ryan87c]

I'm doing my accounting practice set and I have journalized everything but 3 entries that I think do not get entered.

Journalize December 2006 transactions.

1. 12/10/06 University, inc signed a lease for additional office space. The company will move into the facility on January 2, 2007, at which time $10,000 will be due for the first and last month's rent of $5,000 per month.

2. 12/31/06 The companyreceived the utility bill for the month of December 2006 $13,506.

3. 12/31/06 The board directors declared dividends payable February 1, 2007 to stockholders of record as of January 15, 2007. $20,000


I came to the conclusion that since no transaction is taking place during December that I should not journalize these... Is this correct?

[MLSNC]

1. Agree with no entry
2. Why wouldn't this utility bill be recorded as an account payable?
3. I believe once dividends are declared they are recorded as a liability at that time with a debit to retained earnings.

Hope this helps.