How do I journalize this problem????

May 11, - Incurred utility expense of $1,000 on account.
May 16, - Paid $500 on balance owened for untility incurred on May 11.

I did it like this --- Is this correct. Please advise if I'm wrong.

Date: ----Description/Account------Debit-----Credit
--------------------------------------------------------------
May 11-- Utilities Expense --------- 1,000
--------------- Account payables ---------------- 1,000
(inccured utilites expense on account)
-------------------------------------------------------------
May 16 -- Account Payables --------- 500
-------------- Utilities Expense ------------------ 500
(Paid creditor on account)

gacsaj68 is right.

Your first journal entry is correct.

However, the second one is wrong. The basic thing we have to do in making journal entry is to ask "What I gain and what I lose?"

In May 16 transaction, what do I gain? None. What do I lose? Payable and Cash (or cash in bank if you issue check as payment).

Then journalize your answer, if I lose payable, therefore I should debit Accounts Payable. If I lose cash therefore I should credit it.

So, the rightful journal would be:

-Accounts Payable----------------500
--------Cash (or Cash in Bank)----------500