Question

Record adjusting journal entries for each of the following for year ended December 31. 

Assume no other adjusting entries are made during the year. 

a. Accounts Receivable. At year-end, the L. Cole Company has completed services of $20,500 for a client, but the client has not yet been billed for those services. 

b. Interest Receivable. At year-end, the company has earned, but not yet recorded, $450 of interest earned from its investments in government bonds. 

c. Accounts Receivable. A painting company collects fees when jobs are complete. The work for one customer, whose job was bid at $1,420, has been completed, but the customer has not yet been billed.

1 At year-end, the L. Cole Company has completed services of $20,500 for a client, but the client has not yet been billed for those services. 

2 At year-end, the company has earned, but not yet recorded, $450 of interest earned from its investments in government bonds. 

3 A painting company bills customers when jobs are complete. The work for one customer, whose job was bid at $1,420, has been completed, but the customer has not yet been billed.

Answer 1

Journal entries

Transaction	General Journal	Debit	Credit
1	Account receivable	20500
	Service revenue		20500
2	Interest receivable	450
	Interest revenue		450
3	Account receivable	1420
	Service revenue		1420