Question

Prepare adjusting entries for accruals. BE3.7 (LO 3) The bookkeeper for Abduli Company asks you to prepare the following accrued adjusting entries at December 31 1. Interest on notes payable of $400 is accrued. 2. Services performed but not recorded total $2,300. 3. Salaries earned by employees of $900 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.

Answer 1

Transaction	General journal	Debit	Credit
1.	Interest expense	$400
	Interest payable		$400
	( To record interest expense)
2.	Accounts receivable	$2,300
	Service revenue		$2,300
	( To record service revenue)
3.	Salaries and wages expense	$900
	Salaries and wages payable		$900
	( To record salaries and wages expense)

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