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On April 1, the company retained an attorney for a flat monthly fee of $1,000. Payment...

On April 1, the company retained an attorney for a flat monthly fee of $1,000. Payment for April legal services was made by the company on May 12. A $440,000 note payable requires 8.8% annual interest, or $3,227, 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, $1,076 of interest expense has accrued. 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. The subsequent entry during May to record payment of the accrued expenses.

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Answer #1
No. Date General Journal Debit Credit
A 30-Apr Legal fees expenses $ 1,000.00
To legal fee payable $ 1,000.00
(Being legal fee expenses booked)
12-May Legal fee payable $ 1,000.00
To cash $ 1,000.00
(Being legal fees paid)
B 30-Apr Interest expenses $ 1,076.00
   To interest payable $ 1,076.00
(Being interest expense booked)
20-May Interest payable $ 1,076.00
Interest expense $ 2,151.00
   To cash $ 3,227.00
(Being interest expenses paid)
C 30-Apr Salaries expenses (8000*2/5) $ 3,200.00
To salaries payable $ 3,200.00
(Being salary expense booked)
03-May Salaries expenses (8000*2/5) $ 3,200.00
Salaries payable $ 4,800.00
   To cash $ 8,000.00
(Being salaries paid)
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