Unpaid Expenses and Journal Entries

The transcript discusses unpaid expenses at the end of 2020, specifically electricity and water bills. It explains how to record these expenses in the adjustment journal, with electricity and water expenses debited and corresponding liabilities credited. The transcript questions the correctness of these journal entries.

What were the unpaid expenses at the end of 2020?

• Electricity and water expenses

• Rent and salary expenses

• Insurance and maintenance expenses

• Office supplies and travel expenses

What was the amount of the unpaid electricity expense?

• 1,395,300

• 879,600

• 750,000

• 515,700

In the adjusting journal entry, what is the debit entry for the electricity expense?

• Debit to water expense

• Debit to electricity expense

• Credit to electricity expense

• Credit to water expense

What is the credit entry for the water expense in the adjusting journal entry?

• Debit to electricity expense

• Debit to water expense

• Credit to water expense

• Credit to electricity expense

Is the adjusting journal entry for the unpaid expenses correct?

• Yes, it is correct

• No, it is incorrect

• Partially correct

• Not enough information