Discuss the three separate situations

Reference no: EM131528295

Question: The following 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 the payment of the accrued expenses.

a. On April 1, the company retained an attorney for a flat monthly fee of $2,500. This amount is paid to the attorney on the 12th day of the following month in which it was earned.

b. A $780,000 note payable requires 9.6% annual interest, or $6,240 to be paid at the 20th day of each month. The interest was last paid on April 20 and the next payment is due on May 20. As of April 30, $2,080 of interest expense has accrued.

c. Total weekly salaries expense for all employees is $9,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on Tuesday of this year, which means that the employees had worked two days since the last payday. The next payday is May 3.

Reference no: EM131528295

Questions Cloud

Prepare adjusting journal entries for the year ended : Prepare adjusting journal entries for the year ended (date of) December 31, 2011, for each of these separate situations.

The four parts of the christian biblical narrative : The four parts of the Christian Biblical narrative of creation, fall, redemption, restoration can help tell us about suffering and disease.

Successful airlines acknowledge different pricing strategies : Discuss how successful airlines acknowledge different pricing strategies as they relate to the airline's overall business strategy.

How may the given security threats be mitigated : How may these security threats be mitigated? What are a few strategies that can be used to deter or prevent unauthorized use?

Discuss the three separate situations : The following three separate situations require adjusting journal entries to prepare financial statements as of April 30.

How the business is doing relative to the previous year : You have been asked by the top leadership in your organization to develop a PowerPoint presentation on how the business is doing relative to the previous year.

What is an icon? why is it important to the roc believer : What is an icon? Why is it important to the ROC believer? What happened with the ROC during the era of the Golden Horde

Explain an overview of the organization you selected : Explain an overview of the organization you selected, including the following: Name of the organization, locations, web address.

Marketing strategy analysis : Before selling a product or service, most successful firms throughout the world create marketing strategies, goals, and objectives.

User Account

All Pages