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Over [174]
3 years ago
7

On april 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for april legal services was made by the

company on may 12. Prepare the required adjusting entry, if any
Business
1 answer:
telo118 [61]3 years ago
8 0

Answer:

<u>On April 30,</u>

Dr Attorney Fee Expense $3500

Cr Attorney Fee  Payables       $3500

<u>On May 12,</u>

Dr Attorney Fee  Payables $3500

Cr Cash Account                        $3500

Explanation:

Okay here the attorney fee is the legal fee expense that was accrued in April and must accounted for as accrued expense. The accounting entry would be increase in payables (Credit) and expense (Debit) as well.

Dr Attorney Fee Expense $3500

Cr Attorney Fee  Payables       $3500

Now on May 12, the company paid the expense which means that the legal fee payable was reduced to zero (Reduction in liabilities is always debited) and the cash is also reduced by $3500 (Asset reduction is always credited).

Dr Attorney Fee  Payables $3500

Cr Cash Account                        $3500

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C.

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Does the agreement specify that ownership of the asset transfers to the lessee? NO

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Stephen is a professor at a university. He tells his students that rich countries continue to stay rich because they control the
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​World-system theory are various approach to how past events in the world played out alongside social changes and it's impact on the people.

They are many claims the rich make their wealth off the poor, many of those claims could be true, as we are surrounded with a few rich and many struggling person's in the society. These theories and many more which tell how past events play out is known to be ​World-system theory.

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