Question

a. Received a $510 utility bill for electricity usage in July to be paid in August b. Owed wages to 15 employees who worked two days at $55 each per day at the end of July. The company will pay employees at the end of the first week of August. c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $660 for one full year of interest. No interest has been recorded yet. Stoc Liabilities Assets Transaction a b. c

Answer 1

Transaction	Assets		=	Liabilities		+	Stockholders equity
a.			=	Accounts payable	510	+	Utilities expense	-510
b.			=	Wages payable	1,650	+	Wages expense	-1,650
c.	Interest receivable	55	=				Interest revenue	55

(b) Number of employees = 15

Wages per employee per day = $55

Number of days = 2

Wages payable = Number of employees x Wages per employee per day x Number of days

= 15 x 55 x 2

= $1,650

(c) Interest revenue for 1 year = $660

Interest revenue for 1 month = 660 x 1/12

= $55

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