Question

which of the following journal entries is recorded correctly and in the standard format?

• cash 1400

salaries and wages expense 670
advertising expense 730

• salaries and wages expense 670

cash 1400
advertising expense 730

• salaries and wages expense 670

advertising expense 730
cash 1400

• salaries and wages expense 670

advertising expense 730
cash 1400

Explanation:

To determine the correct journal entry, we analyze the standard format for recording expenses paid in cash. Expenses (Salaries and Wages Expense, Advertising Expense) are debits (left - side, positive amounts), and Cash is a credit (right - side, amount equal to the sum of debits). First, calculate the sum of the expenses: \(670 + 730=1400\). In the standard journal entry format, expense accounts are debited (amounts on the left), and the cash account (being a credit for the payment) has the amount on the right. Let's check each option:

• Option 1: Cash is debited (left) and expenses are credited (right) - incorrect, as expenses should be debited and cash credited for a payment.
• Option 2: Cash is credited (right) but Salaries and Wages Expense is debited (left) and Advertising Expense is also debited (left) but the amounts don't sum to Cash's amount in a correct debit - credit way. The Cash amount (1400) is on the right, but Salaries and Wages Expense (670) is on the left and Advertising Expense (730) is on the left. But the structure is not correct as the total debit (670 + 730 = 1400) should equal the total credit (1400), but the way the accounts are listed is not standard (Cash is in the middle).
• Option 3: Expenses are credited (right) and Cash is debited (left) - incorrect, as expenses should be debited when incurred and cash credited when paid.
• Option 4: Salaries and Wages Expense (\(670\)) and Advertising Expense (\(730\)) are debited (left - side, amounts), and Cash is credited (right - side, amount \(1400\), which is \(670 + 730\)). This follows the standard journal entry format: Debits (expenses) on the left, Credit (Cash) on the right, and total debits (\(670+730 = 1400\)) equal total credits (\(1400\)).

Answer:

The correct journal entry is the fourth option:
Salaries and Wages Expense \(\quad\) 670
Advertising Expense \(\quad\) 730
Cash \(\quad\quad\quad\quad\quad\quad\) 1400