Reference no: EM133148549
Question - Robert Logan, Chartered Accountant - Prepare Adjusting Entries for the month ended 30 April, 2009
(a) Robert Logan was hired on 15 April by Bourke constructions to perform services on a monthly basis. Under this agreement, Bourke will pay Logan $750 monthly, with the first payment on15 May. During April Logan will earn half a month's fee.
(b) Robert Logan prepaid 3 months' rent on 1 April, after negotiating a lease for his business office. The lease specifies monthly rental amounts of $1 100.
(c) Logan's furniture, which was purchased on 1 April for $15000, is expected to have a useful life of 5 years, and be virtually worthless at the end of its life.
(d) Robert Logan pays his employee a monthly salary of $3 000, half on the 15th and half on the last day of the month. If the pay day falls on the weekend, Logan pays the employee on the following Monday. Because the final pay day of the month of April (30th) falls on a Saturday, the second half-month's salary will be paid on Monday, 2 May.
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