Paid employees salaries 5300; restauraunt rent 3400 and advertising expense 750. Record a compound entry

1 answer

To record the compound entry for the paid employees' salaries, restaurant rent, and advertising expense, you can make the following journal entry. Note that a compound entry involves multiple accounts affected by a single transaction.

  1. Debit Salaries Expense for the amount paid to employees.
  2. Debit Rent Expense for the amount of restaurant rent.
  3. Debit Advertising Expense for the amount spent on advertising.
  4. Credit Cash for the total amount paid out.

Here’s how the journal entry would look:

Journal Entry:

| Date | Account Titles | Debit | Credit | |------------|-----------------------------|---------|---------| | YYYY-MM-DD | Salaries Expense | 5,300 | | | | Rent Expense | 3,400 | | | | Advertising Expense | 750 | | | | Cash | | 9,450 |

Explanation:

  • Salaries Expense (Debit): Recognizes the cost incurred for employee salaries.
  • Rent Expense (Debit): Recognizes the cost of renting the restaurant.
  • Advertising Expense (Debit): Recognizes the cost of advertising.
  • Cash (Credit): Represents the total cash outflow.

Total Debit = $5,300 + $3,400 + $750 = $9,450
Total Credit = $9,450

Ensure to replace "YYYY-MM-DD" with the actual date you are making the entry.