Question

For each of the following transactions for New Idea Corporation, prepare the adjusting journal entries required on July 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Received a $790 utility bill for electricity usage in July to be paid in August. Owed wages to 10 employees who worked three days at $160 each per day at the end of July. The company will pay employees at the end of the first week of August. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $2,340 for one full year of interest. No interest has been recorded yet.

Answer 1

Answer:

1      

Db Utility expense __________790    

Cr Account payable utility_____________790    

Received a $790 utility bill for electricity usage in July to be paid in August.          

2      

Db Salaries expenses_______4800    

Cr Account payable salaries______________4800    

Owed wages to 10 employees who worked three days at $160 each per day at the end of July      

     

3      

Db Account receivable employes__2340    

Cr Cash______________________________2340    

loaned money to an employee who agreed to repay the loan      

Explanation:

1      

Db Utility expense __________790    

Cr Account payable utility_____________790    

Received a $790 utility bill for electricity usage in July to be paid in August.          

2      

Db Salaries expenses_______4800    

Cr Account payable salaries______________4800    

Owed wages to 10 employees who worked three days at $160 each per day at the end of July      

     

3      

Db Account receivable employes__2340    

Cr Cash______________________________2340    

loaned money to an employee who agreed to repay the loan