Question

On November 30, 2017, FCM accrued $230 for that month's AT&T Internet and telephone bill. That ATT&T bill was paid on December 5.

So the Instructions states that the bill was accrued in November so I'm assuming the accrual looked like this:

DR Utility Expense

CR Accounts Payable

So when I actually pay the bill in December it would look like this:

DR Accounts Payable

CR Cash  

I'm not too sure if that makes sense or is correct but that's what I gather from accruing an expense, so please correct me if I am wrong in any way. There is no accrued expense in the chart of accounts so it cannot go to that account.

Answer 1