Question

Dodie Company completed its first year of operation on December 31. All if the year’s entries have been recorded except for the following.

1. At year-end, employees earned wages of $4,000 which will be paid on the next payroll date in January of next year.
2. At year-end the company had earned interest of $1500. The cash will be collected March 1 of the next year.

Required

2. Prepare the required adjusting entry for transaction (a) and (b) {if no entry is required for a transaction. Select “No Journal entry required” in the first account field).

Journal Entry Worksheet

Answer 1

1(a) 0 assests 4K in labilities and (4000) in stockholders equity. On income statement 4K in expenses and (4000) in net income. 

1(b) 1500 in assets and stock holders equity. On income statement 1500 in revenue and net income. 

2(a) (600) assets and stock holders equity.600 in expenses and (600) in net income. 

2(b) (68000) in assets and stock holders equity. 68k in expense and (68000) in net income.

Answer 2

Debit | credit Accounts & titles Wages expense wages payable 4000 4ooo Interest Receivable 1500 1500 Interest Revenue