Question

Question 15 View Policies Current Attempt in Progress Metlock, Inc. is the new owner of Metioc's Computer Services. At the end of May 2017 herfst month of ownership Metlock is trying to prepare monthly financial statements. She has the following information for the month 1 Ally31 Metlock owed employees in salaries that the company will pay in August 2 On July 1, Metlock borrowed $19.00 from a local bark on a 11 year of the w interest rate is 10% 1 Service revenue recorded in July totaled $1.000 Prepare the adjusting entries needed ly 31, 2017. The entry s e cto ry for the accounts and enter for the accounts indented when the amount No Account Tities and Explanation

Answer 1

Solution:

Journal Entries
Date	Particulars	Debit	Credit
31-Jul	Salaries expense Dr	$3,300.00
	To Salaries payable		$3,300.00
	(To record salaries expense)
31-Jul	Interest expense Dr	$160.00
	To Interest payable ($19,200*10%*1/12)		$160.00
	(To record interest expense accrued)
31-Jul	Accounts receivables Dr	$1,600.00
	To Service revenue		$1,600.00
	(To record service revenue)