The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers. a. Bill's paid $1,500 to plumbers for repairing a broken pipe in the restrooms. b. Bill's paid $2,000 for the June electricity bill and received the July bill for $2,500, which will be paid in August. c. Bill's paid $5,475 to employees for work in July. Prepare journal entries to record the above transactions.. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

repair expense 1,500 debit

        cash                  1,500 credit

--to record repair expense in the building--

utilities payable  2,000

               cash                 2,000

--to record the payment of June utilities--

utilities expense 2,500

             utilities payable   2,500

-to record the accrued utilities of July--

wages expense 5,475 debit

    wages payables     5,475 credit

--to record payment to employees--

Explanation:

We will follow the debit = credit rule.

The expenses will be always posted on the debit side Therefore, the other account are forced to go into credit to balance the entry.

Also, when cash is used to pay something, our cash available decrease thus, we have a decrase in an asset that is recorded under credit

for the other entries we are asumingthe acrual of an expense, whch generates the later obligaion to pay it. Hence, we recongize a liablity which is credited.

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