24E-a - Horngren'S Financial And Managerial Accounting

Question

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.

a. Incurred and paid Web site expenses, $2,000.

Step-by-Step Solution

Answer

Date	Particulars	Debit ($)	Credit ($)
	Website expenses	2,000
	Cash		2,000
	(website expenses incurred and paid)

Step-by-Step Solution: Step 1: Expenses

Expenses mean the cost incurred by the company for running the business. It is classified as the direct or indirect expenses in the income statement.

Step 2: Recording of website expenses in the books of the company

The company records website expenses in the books of the company by debiting the website expenses and crediting the cash account, when the expense is incurred and paid.