Question

onments Question 28 View Policies Current Attempt in Progress Wadhorse Co. is the new owner of Wildhorse's Computer Services. At the end of July 2017. her first month of ownership, Wildhorse is trying to prepare monthly financial statements. She has the following information for the month book PLUS S ort 1. At July 31. Wildhorse owed employees $2.000 in salaries that the company will pay in August 2. On July 1, Wildhorse borrowed 518,000 from a local bank on a 12-year note. The mainterest rate is 10% 3 Service revenue unrecorded in July totaled $1.600 y Resources Prepare the adjusting entries needed at july 31, 2017. Of no entry is required select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when the amount is entered. Do not indent manually)

Answer 1

Credit ANSWER: No. Account titles and explanations 1 Salary Expense Salary Payable (Salary for the montnh of july due) Debit 2,000 $ $ 2,000 $ 150 150 Interest Expense Accrued Interest (Interest due on 12 year note for the month of july - ($18,000*10%)/12 ) 3 $ 1,600 $ 1,600 Accounts Receivable Service Revenue (Unrecorded service revenue recognised for the month of july)