a. On April 1, the company hired an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12.
b. As of April 30. $3,000 of interest expense has accrued on a note payable. The full interest payment of $9,000 on the note is due on May 20.
c. Total weekly salaries expense for all employees is $10,000. 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 joumal 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.
General Journal | Debit | Credit | ||
Apr 30 | Legal fees expense | 3500 | ||
Legal fees payable | 3500 | |||
May 12 | Legal fees payable | 3500 | ||
Cash | 3500 | |||
Apr 30 | Interest expense | 3000 | ||
Interest payable | 3000 | |||
May 20 | Interest expense | 6000 | ||
Interest payable | 3000 | |||
Cash | 9000 | |||
Apr 30 | Salaries expense | 4000 | =10000*2/5 | |
Salaries payable | 4000 | |||
May 03 | Salaries expense | 6000 | =10000*3/5 | |
Salaries payable | 4000 | |||
Cash | 10000 |
a. On April 1, the company hired an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12.
a. On April 1, the company hired an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12 b. As of April 30, $3,000 of Interest expense has accrued on a note payable. The full interest payment of $9,000 on the note is due on May 20 c. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the day on Friday...
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. A $900,000 note payable requires 12% annual interest, or $9,000, to be paid at the 20th day of each month. The interest was last paid on April 20, and the next payment is due on May 20. As of April 30, $3,000 of interest expense has accrued. Total weekly salaries expense for...
a. 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. b. A $940,000 note payable requires 9.0% annual interest, or $7,050, to be paid at the 20th day of each month. The interest was last paid on April 20 and the next payment is due on May 20. As of April 30, $2,350 of interest expense has accrued. c. Total weekly...
On April 1, the company retained an attorney for a flat monthly fee of $1,000. Payment for April legal services was made by the company on May 12. A $440,000 note payable requires 8.8% annual interest, or $3,227, to be paid at the 20th day of each month. The interest was last paid on April 20, and the next payment is due on May 20. As of April 30, $1,076 of interest expense has accrued. Total weekly salaries expense for...
a. On April 1, the company hired an attorney for a flat monthly fee of $3,000. Payment for April legal services was made by the company on May 12. b. As of April 30, $1,076 of interest expense has accrued on a note payable. The full interest payment of $3,227 on the note is due on May 20. c. Total weekly salaries expense for all employees is $8,000. This amount is paid at the end of the day on Friday...
a. On April 1, the company hired an attorney for a flat monthly fee of $1,500. Payment for April legal services was made by the company on May 12. b. As of April 30, $1,335 of interest expense has accrued on a note payable. The full interest payment of $4,005 on the note is due on May 20. c. Total weekly salaries expense for all employees is $15,000. This amount is paid at the end of the day on Friday...
on april 1, the company retained an attorney for a flat monthly fee of $3000 a. On April 1, the company retained an attorney for a flat monthly fee of $3,000. Payment for April legal services was made by the company on May 12 b. A $420,000 note payable requires 9.4% annual interest, or $3,290, to be paid at the 20th day of each month. The interest was last paid on April 20 and the next payment is due on...
a. On April 1, the company retained an attorney for a flat monthly fee of $1,000. Payment for April legal services was made by the company on May 12. b. As of April 30, $1,653 of interest expense has accrued on a note payable. The full interest payment of $4,958 on the note is due on May 20. c. Total weekly salaries expense for all employees is $12,000. This amount is paid at the end of the day on Friday...
a. On April 1, the company retained an attorney for a flat monthly fee of $2,000. Payment for April legal services was made by the company on May 12 b. As of April 30, $1,942 of interest expense has accrued on a note payable. The full interest payment of $5,827 on the note is due on May 20. Total weekly salaries expense for all employees is $8,000. This amount is paid at the end of the day on Friday of...
a. On April 1, the company retained an attorney for a flat monthly fee of $500. Payment for April legal services was made by the company on May 12. b. As of April 30, $1,769 of interest expense has accrued on a note payable. The full interest payment of $5,308 on the note is due on May 20. c. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the day on Friday...