express in journal entry form: incurred and paid web site expenses, $2,000
Journal Entry:
Date: [Insert Date]
Entry: Web Site Expense - Incurred and Paid
Debit: Web Site Expense - $2,000
Credit: Cash/Bank Account - $2,000
Explanation:
To record incurred and paid web site expenses of $2,000 in a journal entry, you need to follow these steps:
1. Identify the date on which the expense was incurred and paid. This is the date that should be mentioned at the start of your journal entry.
2. Determine the appropriate expense account to record the web site expense. In this case, the account would be "Web Site Expense."
3. Debit the "Web Site Expense" account with the amount paid, which is $2,000. Debiting an account increases the expense account balance.
4. Credit the Cash/Bank Account with the same amount, $2,000. Crediting the Cash/Bank Account reduces its balance since cash is going out for the payment.
5. Write a description related to the entry, such as "Web Site Expense - Incurred and Paid," to clearly indicate the nature of the transaction.
Remember, journal entries are used to record financial transactions and maintain accurate records of a company's financial activities.