Question

Brief Exercise 3-07 The bookkeeper for Crane Company asks you to prepare the following accrued adjusting entries at December 31. 1. Interest on notes payable of $570 is accrued. 2. Services performed but not recorded total $2,260. 3. Salaries earned by employees of $800 have not been recorded. Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, and Salaries and Wages Payable. account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 2. Dec. 31 3. Dec. 31 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS V acy Policy. I 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.

Answer 1

No. Date        Account Titles and Explanation                                            Debit     Credit

1.    Dec. 31   Interest Expense A/c   Dr                                                       $570

                                  To Interest Payable A/c                                                              $570

(Being Accrued Interest on Notes Payable)

2.    Dec. 31    Accounts Receivables A/c   Dr                                              $2,260

                                  To Service Revenue A/c                                                            $2,260

(Being Services Performed but Not Recorded, now Adjusted)

3.    Dec.31     Salaries and Wages Expense A/c   Dr                                  $800

                                  To Salaries and Wages Payable A/c                                           $800

(Being Salaries Earned by Employees, Not Recorded Previously, Now Recorded)