Question

were here. Aument Login 2XUMV - Vehicle Re... Guided Adjusting Entries Savod Exercise 3-3 Adjusting and paying accrued expenses LO P3 a. On April 1, the company hired an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12 b. As of April 30, $3,000 of interest expense has accrued on a note payable. The full interest payment of S9,000 on the note is due on May 20. c. Total weekly salaries expense for all employees is $10,000. 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 and the subsequent entry during May to record payment of the accrued expenses

Answer 1

a.

Date	General Journal	Debit	Credit
April 30	Legal expense	$3,500
	Legal expense payable		$3,500
	( To record legal expense)
May 12	Legal expense payable	$3,500
	Cash		$3,500
	(To record payment of legal expenses)

b.

Date	General Journal	Debit	Credit
April 30	Interest expense	$3,000
	Interest payable		$3,000
	( To record interest expense)
May 12	Interest payable	$3,000
	Interest expense	$6,000
	Cash		$9,000
	( To record payment of interest )

c.

Date	General Journal	Debit	Credit
April 30	Salaries expense	$4,000
	Salaries payable		$4,000
	( To record salaries expense)
May 12	Salaries payable	$4,000
	Salaries expense	$6,000
	Cash		$10,000
	(To record payment of salaries )

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