Respuesta :
Answer:
Question continuation
"2. A $480,000 note payable requires 9.1% annual interest, or $3,640, to be paid at the 20th day of each month. The interest was last paid on April 20 and the next payment is due on May 20. As of April 30, $1,213 of interest expense has accrued.
3. Total weekly salaries expense for all employees is $9,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3. The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses. (Use 360 days a year. Do not round intermediate calculations.)"
Solution:
No Type Date Account Debit Credit
1 Adjusting Apr 30 Legal Expenses $3,500
Accounts Payable $3,500
(To record legal expenses)
Subsequent May 12 Accounts Payable $3,500
Cash $3,500
(To record payment in May)
2 Adjusting Apr 30 Interest Expense $1,213
Interest Payable $1,213
(To record interest expense accrued)
Subsequent May 20 Interest Expense $2,427
($3,640-$1,213)
Interest Payable $1,213
Cash $3,640
(To record payment in May)
3 Adjusting Apr 30 Salaries Expense $3,600
Salaries Payable $3,600
($9,000/5*2)
(To record salaries expense accrued)
Subsequent May 3 Salaries Expense $5,400
($9,000/5*3)
Salaries Payable $3,600
Cash $9,000
(To record payment in May)
