Question

Consider the following situations: (Click the icon to view the situations.) Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Business receives $2,400 on January 1 for 10-month service contract for the period January 1 through October 31. (When the cash was received on January 1, assume that a liability account was credited. Assume services are performed evenly each month throughout the term of the contract.) Date Accounts and Explanation Debit Credit More Info Jan. 31 a. Business receives $2,400 on January 1 for 10-month service contract for the period January 1 through October 31. (Assume services are performed evenly each month throughout the term of the contract.) b. Total salaries for all employees is $2,600 per month. Employees are paid on the 1st and 15th of the month. C. Work performed but not yet billed to customers for the month is $800. d. The company pays interest on its $14,000, 9% note payable of $105 on the first day of each month. b. Total salaries for all employees is $2,600 per month. Employees are paid on the 1st and 15th of the month. Date Accounts and Explanation Debit Credit Jan. 31 Print Print Done Done

Answer 1

Enteries Adjusting Enteries Trans. Particulars a. Unearned Revenue a/c Dr. To Service Revenue (Revenue recognized) 2400/10 Debit in $ Credit in $ 240 240 Dr. 1300 Salaries Expense a/c To Salary Payable (Salary accrued) 2600/2 1300 Dr. 800 Accounts Receivable a/c To Service Revenue (Services not billed) 800 d. Dr. 105 Interest Expense a/c To Interest Payable (Interest accrued) 105