Question

3.33 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, $1,073 of interest expense has accrued on a note payable. The full interest payment of $3.220 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 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 payment of the accrued expenses. (Do not round Intermediate calculations.)

Answer 1

		Debit	Credit
Apr. 30	Legal fees expense	3000
	Legal fees payable		3000
May 12	Legal fees payable	3000
	Cash		3000
Apr 30	Interest expense	1073
	Interest payable		1073
May 20	Interest expense	2147
	Interest payable	1073
	Cash		3220
Apr 30	Salaries expense	3200		=8000*2/5
	Salaries payable		3200
May 03	Salaries expense	4800		=8000*3/5
	Salaries payable	3200
	Cash		8000