Problem

Adjusting for accrued expenses and accrued revenues The following two separate situatio...

Adjusting for accrued expenses and accrued revenues

The following two 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 the payment of the accrued expenses or collection of the accrued revenue.

a. On April 1, the company retained an attorney at a flat monthly fee of $3,500. This amount is payable on the 12th of May.

b. On April 30 the company has earned $7,500 of design fees, which it has yet to bill or record. This amount is collected on May 28.

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Solutions For Problems in Chapter 13