STEVENS REALTY
Paid $300 to send employees to realtor's workshop.
is it:
Salaries Expense (DEBIT)
Cash (CREDIT)
OR
Salaries Expense (DEBIT)
Salaries Payable (CREDIT)
Please refer to your later post, which I saw first. There are tutorials there.
Sra
To determine the correct journal entry for the payment of $300 to send employees to a realtor's workshop for Stevens Realty, you need to consider a few factors.
1. Determine the nature of the expense: In this case, the payment is for sending employees to a workshop, which is related to employee development and training. Therefore, it would be appropriate to classify this expense as "Salaries Expense."
2. Consider the method of payment: If Stevens Realty paid for the workshop in cash, then you should credit the Cash account. However, if the payment was made on credit, then you would credit an appropriate liability account like "Accounts Payable" or "Salaries Payable."
Given the information provided, it is clear that the payment was made in cash, so you would make the following journal entry:
Salaries Expense (DEBIT) - $300
Cash (CREDIT) + $300
Debiting Salaries Expense will increase the expense on the income statement, indicating the cost incurred by the company. Crediting Cash will show a decrease in cash on the balance sheet, reflecting the actual payment made.