[jvillemaire]

How do I journalize this: telephone expense for the month $350... it doesn't say if it was paid or not because the next journal entry is paid for utility bill $400, which would be to debit utility exp and credit cash but I don't know what to do with the telephone expense?

[vaibhavdhadave]

2. Following expenses are paid during the month of December 2004 by Tendulkar Ltd.

i. Telephone 6,000 (for the period of 15/12/2004 to 15/01/2005)
ii. Salaries 2,75,000 (for December)
iii. Stationery 4,750 (for December)
iv. Insurance 6,000 (for the period Oct 04 to Sept 05)

Pass the necessary Entries in the Books of Tendulkar Ltd for the month of December 2004 with narration using the Account Heads given below for there monthly accounts of Dec 2004.

[pready]

1. Debit Telephone Expense for the amount
Credit Accounts Payable for the amount(if not paid) or Cash (if paid).

2. i. Same as above
ii. Debit Salaries Expense for the amount
Credit Cash for the amount
iii. Debit Supplies Expense for the amount
Credit Supplies for the amount
iv. Debit Prepaid Insurance (if not previously recorded) for the amount
Credit Cash for the amount
Deibt Insurance Expense for the cost * 3 months use / 12 months
Credit Prepaid Insurance.