Received Utilities Bill

When a business receives an utilities bill it needs to record these as expenses.

Utilities Bill Journal Entry Example

For example, suppose a business receives a utilities bill for 500 and is given credit terms from the supplier.

The accounting records will show the following journal entry in respect of the bill for utilities:

Utilities Bill Journal Entry
Account Debit Credit
Utilities expense 500
Accounts payable 500
Total 500 500

Bookkeeping Explained

Debit
The business has received a utilities bill and this is recorded as an expense in the income statement.

Credit
The credit entry represents the liability to pay the supplier in the future for the use of the utilities.

Received Utilities Bill Accounting Equation

The accounting equation, Assets = Liabilities + Owners Equity means that the total assets of the business are always equal to the total liabilities plus the total equity of the business. This is true at any time and applies to each transaction. For this transaction the accounting equation is shown in the following table.

Received Utilities Bill Accounting Equation
Assets = Liabilities + Owners Equity
None = Accounts payable Utilities expense
0 = 500 500

In this case the balance sheet liabilities (accounts payable) have been increased by 500, and the income statement has a utilities expense of 500. The expense reduces the net income, retained earnings, and therefore owners equity in the business.

Popular mdct.ru Examples

This utilities bill journal entry is one of many examples used in mdct.ru, discover another at the links below.

Received Utilities Bill November 6th, 2016Team

You May Also Like


Related pages


accounting for zero coupon bondslease accounting entriessum of the years digits depreciation methodchain discount calculatorhow to prepare a schedule of accounts receivableprofit margin per unit formulafixed manufacturing overhead costaccount payable journal entriespmt finance formulatvm online calculatorfifo cost formulabalance sheet excel templateledger paper pdfpercent markup calculatorbrs bank reconciliation statementhow to calculate predetermined manufacturing overhead rateexample of chart of accounts in general ledgercalculate the total estimated bad debtsbank reconciliation excel spreadsheetpetty cash template wordexcel cash receipt templatehow to compute for effective interest rateexpanded basic accounting equationcapital gearing formulabookkeeping on excel spreadsheetssmall business accounting spreadsheetdifference between trial balance and ledgerdeferred expenses definitionoverhead absorption rate formulasales ledger control accounthow to calculate interest bearing debtequivalent units are calculated bywhat kind of account is accumulated depreciationwhat is materials requisitionhow to calculate markup percentage formulafixed and variable expenses definitionunearned creditpresent value of an ordinary annuity calculatorhow to calculate depreciation rate for reducing balance methodadjusting entries for inventorynotes receivable sample problemstransaction journal entriesdeferred cost journal entryonline apportionment calculatoraccruing revenueexamples of capital leasesunearned rent debit or creditdefine acid test ratiojournal entry for bad debtsgrowth in perpetuityjournal entry for bills payabletreatment of deferred tax in cash flow statementoverheads in accountinghow to calculate safety stock in excelus gaap chart of accountsfinancial gearing definitionmargin and markup differencecontra account examplecost ledger control account definitioncommon size income statement calculationfob shipping term definitionaccounting spreadsheets excelhow to work out provision for doubtful debtsweighted average periodic inventory methodcapital gearing ratio formulahow to prepare an amortization schedulebasic accounting cycledefine consigned goodsstep in accounting cycleexamples of contra assetsbookkeeping defadjusting entries problems and solutionsmanufactoring overheadledger reconciliation formatrevenue accrualsproveit practice testshow to calculate depreciation rate for reducing balance methodwhat is consignor and consigneetotal monthly fixed manufacturing costreceivable turnover ratio example