Question

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 May 20. As of April 30, $1,097 of interest expense has accrued. c. Total weekly salaries expense for all employees is $11,000. 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 journal 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. (Use 360 days a year. Do not round Intermediate calculations.)

Answer 1

Debit 3000 Credit 3000 3000 3000 Journal Enteres Ih Date - Particular Papr 30 Legal fees Expense o Legal fees Payable * cto record legal fee čxperse due for April May 12 / Legal fees Payable 1 cash Jo record payment of legal fees] Apr 30 Interest Expense loterest Payable to record interest Expense accaded on note] May 20 Interest Payable Interest Expense O cash 1097 1097 1097 2193 3290 [to record payment of Interest] 1,400 4,400 April 30 salaries Expense(11000 x2) - Salaries Payable Cto record salaries Expenses accrued mag 3/ Salaries Payable salaries Expense - Cash 4,400 6,600 11,000 Cto record payment of salaries V