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Tammy Krause is the new owner of Tammy's Computer Services. At the end of July 2012, her first month of ownership, Tammy is trying to prepare monthly financial statements. She has the following information for the month.
1. At July 31, Krause owed employees $1,100 in salaries that the company will pay in August.
2. On July 1, Krause borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 9%.
3. Service revenue unrecorded in July totaled $1,600.
Prepare the adjusting entries needed at July 31, 2012.
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