People…
I need help!
If it says “Incurred Utilities expense for a month on account of $170”
Under the liabilities, it would go under Accounts payable, (right?), but under assets how do I set it up? Do I add another column? I already have Cash, accounts receivable, equipment, and supply under assets.
I saw several other examples and it said the rent and utilities were paid in cash, so it would subtract it from cash under assets and also subtract it from owner’s equity’s…
Re: Accounting for Dumb…
Re: Accounting for Dumb...
^yo that was scary
and it confused me
Re: Accounting for Dumb…
me 2 
Re: Accounting for Dumb…
no way
Incurred Utilities expense for a month will depend on which month of the year we are talking about - there is a 90 day window for this , i mean 45 days proceeding and 45 days preceeding the actual transactions. You can either write it off as personal expense or better if you just leave it as is. It is not a liability - its more a pain in the neck
If the rent and utilities were paid in cash, they should not be subtracted cash under assets and they should be accrued towards ones MIL or FIL’s account 
Re: Accounting for Dumb...
what level acct is this?
Re: Accounting for Dumb…
hain?
Re: Accounting for Dumb...
hain?
what level acct is this?
Level 2B :)
People... I need help!
If it says “Incurred Utilities expense for a month on account of $170”
Under the liabilities, it would go under Accounts payable, (right?), but under assets how do I set it up? Do I add another column? I already have Cash, accounts receivable, equipment, and supply under assets.
I saw several other examples and it said the rent and utilities were paid in cash, so it would subtract it from cash under assets and also subtract it from owner's equity's...
Account payable is some fixed expense for the year, some expected expense you make on purchase etc! ... Incured utility expense should go under 'supply under assets' ... (just my thoughts)
People...
I need help!
If it says “Incurred Utilities expense for a month on account of $170”
Under the liabilities, it would go under Accounts payable, (right?), but under assets how do I set it up? Do I add another column? I already have Cash, accounts receivable, equipment, and supply under assets.
I saw several other examples and it said the rent and utilities were paid in cash, so it would subtract it from cash under assets and also subtract it from owner's equity's...
thats a no brainer kish mish. Incurred utilities expense for the month "on account" of $170.
This is accrued liability. therefore the entry is :
DR: Utilities Expense 170
Cr: Accounts Payable 170
Remember that whenever there is a transaction, it has to effect atleast one account of Asset and Liabilities or Owners Equity. ( or accounts of income statement and balance sheet ). In that case, utilities expense is ur income statement account (temporary) and accounts payable is ur balance sheet account.
Accrued liabilities are those which you have incurred in your business but have not yet paid or recorded in your books. Similarly, the word "on account" simply means that you're not paying yet. If the transaction was something like : Sold equipment on account for $5000, then that would have meant that you're not receiving the money right away. So, on account simply means you're not paying/receiving the money yet.
Hope this helped. :)
Re: Accounting for Dumb...
Thanks guys for your replies.
Its my first accounting class, and first week..
so FrozenFire, we haven't got into the DR and Cr this week...prbly next week...
we just started doing transactions..
I didn't still quite understand the answer... or maybe I am making it too complicated...
I just don't get where to place the Utilities cost under assets...can I place it along with supplies column? Under liabilities, I put it under accounts payable. In the end everything turned out to be balanced on both sides... But I don't know where to stick the $170 for assets.
By the way, would some of your people like to be my friends? :D
This semester is going to be long :p
Re: Accounting for Dumb...
Kish mish.. Since you're not paying for it right away because it says " on account " you cant put anything on the assets side. You will overstate the assets section. It is most definitely " Utilities Expense " for the debit side.
ill be ur friend :).. but i'll go crazy if every now and then you'll bring up an accounting problem for me to solve :D. I'm already going crazy in uni studyin this as major.
Re: Accounting for Dumb...
^ Aw, thanks! I promise before I bring it to you Ill try to solve it myself :D
By the way, the utilities expenses don't go on the asset side, they are added under liability, and decreased from owner's equity. Anyways, our teacher told us we will never be doing this kind of stuff again in accounting or any other class...