Question

Mobo, a wireless phone carrier, completed its first year of operations on October 31. All of the year's entries have been recorded, except for the following: a. At year-end, employees earned wages of $6,000, which will be paid on the next payroll date, November 6. b. At year-end, the company had earned interest revenue of $3,000. It will be collected December 1 -4 Part 3 Show the accounting equation effects of each required adjustment. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) ansaction Assets Liabilities Stockholders' Equity 6,000 Salaries and Wages Payable 4,900 6,000 alaries and Wages Expense nterest Receivable a. 4.,900 Acounts Payable b. terest Revenue

Answer 1

Answer:

Explanation:

a) Salaries and wages expenses     $6,000

   To salary for wages payable        $6,000

b) Interest Receivable a/c-d-               $4,900

   To interest revenue                          $4900

Assets   = Liabiliteies +stockholder equity

a)       0   =                 6000    +    (-6000)

    (No effect)        (Increase)   (Decrease)

       0 =6000 -6000

b)  4900  = 0      +          4900

                 (no effect)    (increase)