Here are explanations for the expense and date entries in the general journal for KidKare, Inc. for 2011:
Dec 30, 2011 - Childcare Expense account is debited for $2,400 to record the expense incurred for providing childcare services for the month. The credit is to the Cash account to record the payment of this expense.
The date of Dec 30, 2011 represents the last day of the accounting period (month) being recorded. Expenses are recorded on the date they are incurred, which for a childcare business would be at the end of the month after providing the services. The cash payment is also recorded on this date to show it was paid by the end of the accounting period.
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