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Journal entries for legal expenses incurred in contesting the insurance settlement.
1. (3/4/2009) Paid the February, 2009 employee salaries of $69,000. (Total monthly salaries increased $3,000 per month, effective in February, 2009).
Date
Account Titles
Debit
Credit
2.(3/3/2009) Paid the February, 2009 utilities expense of $9,180.
3.(3/5/2009) Paid $7,300 legal expenses incurred in contesting the insurance settlement related to the earthquake damage earlier in the year.
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