JournaldrillPaying rent and utilities
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
On October 31, Summit Yoga Studio writes two checks: $2,100 for October rent on its studio space and $340 for the October electricity bill. Neither amount was recorded earlier. Record both payments in one compound entry.
What this exercise teaches
October's rent and electricity have been used up in October, so they are expenses of the period rather than prepaid assets. Each expense is debited separately, and Cash is credited for the combined $2,440 paid.
A hint if you get stuck
Both payments cover costs of the current month, so two expense accounts increase and one asset decreases.
Try it now, no account needed
This exercise is free. Open it on the practice page, solve it, and get instant feedback with a hint and a worked solution after two tries.
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