Reference no: EM131819290

Question - Following are the transactions for Valdez Services.

1. The company paid $12,200 cash for payment on a 16-month-old liability for office supplies.

2. The company paid $1,233 cash for the just completed two-week salary of the receptionist.

3. The company paid $39,200 cash for equipment purchased.

4. The company paid $870 cash for this month's utilities.

5. The company paid $4,500 cash in dividends to the owner (sole shareholder).

Required:

1. Examine the above transactions and identify those that create expenses for Valdez Services.

2. Prepare general journal entries to record those transactions that created expenses in the above given order.