Question

Check my wor Exercise 3-2 Adjusting and paying accrued expenses LO P1 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. A $740 000 note payable requires 82% annual interest, or $5,057, 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, $1,686 of interest expense has accrued c. Total weekly salaries expense for all employees is $9,000. 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. he above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, . The April 30 adjusting entry present both: . The subsequent entry during May to record payment of the accrued expenses (Use 360 days a year. Do not round intermediate calculations.)

Answer 1

Solution:

S.No	Date	Particulars	Debit ($)	Credit ($)
A)	30-April	Legal fees expenses	$500
		Legal fees payable		$500
		(To record expenses payable)
	12-May	Legal fees payable	$500
		Cash		$500
		(To record legal fees paid)
B)	30-April	Interest expenses	$1,686
		Interest payable		$1,686
		(To record interest payable)
	20-May	Interest payable	$1,686
		Interest expenses	$3,371
		Cash		$5,057
		(To record interest paid)
C)	30-April	Salaries expenses	$3,600
		Salaries payable($9,000*2/5)		$3,600
		(To record salaries payable)
	3-May	Salaries payable ($9,000*3/5)	$5,400
		Salaries expenses ($9,000*2/5)	$3,600
		Cash		$9,000
		(To record salaries paid)