Journal entries: Expenses and payroll

Rent, utilities, advertising, insurance, telephone, bank charges, interest and income tax, and the payroll: salaries, withholding and social contributions.

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The entries

1. Paying the monthly rent
2. Paying six months’ rent in advance
3. Expensing one month of prepaid rent
4. Receiving the electric bill
5. Paying the electric bill
6. Paying the month’s salaries
7. Accruing unpaid salaries at year end
8. Paying salaries accrued at year end
9. Monthly payroll with withholding and employer payroll taxes
10. Recording the employer’s payroll taxes
11. Paying for advertising
12. Paying an annual insurance premium in advance
13. Expensing one month of prepaid insurance
14. Recording office supplies usedNot in: Spain (PGC 2007), France (PCG 2025), Germany (generic accounts)
15. Bank charges on a wire transfer to a supplier
16. Paying quarterly interest on a bank loan
17. Accruing interest on a bank loan at year end
18. Receiving a telephone bill to pay later
19. Reimbursing the owner for a business trip
20. Paying income tax owed by a corporation

Other topics

• Starting the business
• Buying goods and supplies
• Selling goods and services
• Fixed assets
• Adjusting, closing and correcting
• Cash and bank
• Notes and loans
• Inventory and cost of goods
• Corporations and equity
• Multi-step scenarios