Question

Current Attempt in Progress Barbara Jones is the new owner of Barbara's Computer Services. At the end of July 2022, her first month of ownership, Barbara is trying to prepare monthly financial statements. She has the following information for the month. 1. 2. At July 31, Barbara owed employees $1,750 in salaries that the company will pay in August. On July 1, Barbara borrowed $18,000 from a local bank on a 11-year note. The annual interest rate is 10%. Service revenue unrecorded in July totaled $1,600. 3. Prepare the adjusting entries needed at July 31, 2022. (If 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.) No. Account Titles and Explanation Debit Credit 1. 2. 3.

Answer 1

Solution: No. Accounts title and explanation Debit Credit 1 Salaries expense 1750 Salaries payable 1750 150 2 Interest expense Interest payable (18000*10%*1/12) 150 1600 3 Accounts receivable Service revenue 1600