Answer:
1.At July 31, the company owed employees $1,100 in salaries that the company will pay in August.
July, 31
DR Salaries Expense.................................................$1,100
CR Salaries Payable.................................................................$1,100
<em>(To record accrued salaries expense)</em>
2.On July 1, the company borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 12%.
July entry would be;
July 31,
DR Interest Expense ................................................$200
CR Interest Payable ............................................................$200
<em>(To record interest accrued for the month)</em>
<u>Working</u>
= 20,000 * 12%/12 months
= $200
3. Service revenue unrecorded in July totaled $3,000.
July 31,
DR Accounts Receivable .......................................$3,000
CR Service Revenue ...............................................................$3,000
<em>( To record unrecorded Service revenue.)</em>
