How do prepare the journal entries taking into account

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On January 13, 2018 Astra Ltd is preparing to close its financial statements for the year 2017. At that date is has calculated the following accruals for 2017:

Electricity for December 2017 $2,000
Water for December $650
Audit fees for the year 2017 $5,500

On March 13 2018, it has paid the above expenses in full, however audit fees actually paid were $5,000 since the auditors decided to give a discount to the company.

Problem 1: Prepare the journal entries for 2017 and 2018 taking into account the above.

Reference no: EM132669195

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