Question

Andy Roddick is the new owner of Windsor Computer Services. At the end of August 2020, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August. 1. 2. At August 31, Roddick owed his employees $2,087 in wages that will be paid on September 1. At the end of the month, he had not yet received the month's utility bill. Based on past experience he estimated the bill would be approximately $549. On August 1. Roddick borrowed $28,800 from a local bank on a 15-year mortgage. The annual interest rate is 8%. A telephone bill in the amount of $128 covering August charges is unpaid at August 31. 3. 4. Prepare the adjusting journal entries as of August 31, 2020, suggested by the information above. (Credit accounttitles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) No. Date Account Titles and Explanation Debit Credit Aug 1 31 2 Aug 31 3 Aug 31 4 Aug 31

Answer 1

Solution

No	Date	Accounts Titles and Explanation	Debit	Credit
1	31-Aug	Salaries and wages expense	$        2,087
		Salaries and wages payable		$        2,087
2	31-Aug	Utility expense	$           549
		Utility payable		$           549
3	31-Aug	Interest expense	$           192
		Interest payable		$           192
4	31-Aug	Telephone expense	$           128
		Telephone expense payable		$           128