Question

Andy Roddick is the new owner of Ace Computer Services. At the end of August 2014, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.
1. At August 31, Roddick owed his employees $1,900 in wages that will be paid on September 1. $1,900
2. At the end of the month he had not yet received the month's utility bill. Based on past experience, he estimated the bill would be approximately: $600
3. On August 1, Roddick borrowed $30,000 from a local bank on a 15 -year mortgage. The annual interest rate is 8% 4. A telephone bill in the amount of $117 covering August charges is unpaid at August 31.

Answer 1

Answer:

wages expense 1,900 debit

   wages payables   1,900 credit

utilities expense 600 debit

    utilities payables    600 credit

interest expense  200 debit

   interest payable    200 credit

telephone expense 117 debit

  telephone payable   117 credit

Explanation:

we record the adjusting entries considering their generate an expense which is being accrued therefore, also a payable account is generated.

interest calculations:

principal x rate x time = interest

30,000 x 0.08 x 1/12 = 200