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Mademuasel [1]
3 years ago
14

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. As of April 30, $1,932 of interest expense has accrued on a note payable. The full interest payment of $5,797 on the note is due on May 20. Total weekly salaries expense for all employees is $14,000. 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.)
Business
1 answer:
nirvana33 [79]3 years ago
8 0

Answer:

A. Adjusting Entries on April 30:

Debit Legal Services Expense $3,500

Credit Legal Services Expense Payable $3,500

To record April legal services expense.

Debit Notes Interest Expense $1,932

Credit Notes Interest Payable $1,932

To record accrued interest expense.

Debit Salaries Expense $5,600

Credit Salaries Expense Payable $5,600

To record 2 days salaries accrued.

B. Journal Entries during May:

May 3:

Debit Salaries Expense Payable $5,600

Debit Salaries Expense $8,400

Credit Cash Account $14,000

To record payment of salaries.

May 12:

Debit Legal Services Expense Payable $3,500

Credit Cash Account $3,500

To record the payment of legal services for April.

May 20:

Debit  Notes Interest Payable $5,787

Credit Cash Account $5,787

To record payment of interest on notes.

Explanation:

Adjusting entries are made at the end of an accounting period to record expenses and revenue that have accrued but are not yet paid or received.  They are also used to account for expenses and revenue made in advance.  The purpose is to ensure that the accounting records reflect the period's actual expenses and revenue incurred and earned.

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Answer:

$3,000

Explanation:

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Warranty Expense for the year = Sales units x 3% x warranty cost per unit

Warranty Expense for the year = 6,000 x 3% x $50 = $9,000

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5 0
3 years ago
Following are the transactions of a new company called Pose-for-Pics.Aug. 1 Madison Harris, the owner, invested $8,000 cash and
Rama09 [41]

Answer:

Aug 1

Dr cash $8,000

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Aug 2

Dr Prepaid Insurance $3,000

Cr Cash$3,000

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Cr Cash$1,520

Aug 29

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Dr photography fees earned $4,000

Aug31

Dr Utilities expense $884

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Explanation:

Preparation of the general journal entries for the above transactions.

Aug 1

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Cr Common Stock $42,400

(8,000+34,400)

Aug 2

Dr Prepaid Insurance $3,000

Cr Cash$3,000

Aug 5

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Cr Cash$1,520

Aug 29

Dr Cash $4,000

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Aug31

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3 years ago
The company has a preponderance of our most popular items
inna [77]

When a company has a preponderance of our most popular items, it implies that the firm has more of that type of product/item than of any other.

<h3>What is  preponderance?</h3>

The word preponderance is said to be superiority in terms of weight, power, vitality, or strength.

It is said to be also when there is an excess of a product or an item in terms of number or quantity.

Learn more about company  from

brainly.com/question/24553900

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2 years ago
Sara was faced with a decision to complete a skill herself or delegate to a staff member. Watch both examples and think about yo
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Answer:

Complete a skill herself.

7 0
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