Pegasus Computer Services began operations in July 2014. At the end of the month, the company is

Question:

Pegasus Computer Services began operations in July 2014. At the end of the month, the company is trying to prepare monthly financial statements. Pegasus has the following information for the month.
1. At July 31, Pegasus owed employees $1,300 in salaries that the company will pay in August.
2. On July 1, Pegasus 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 $2,400.
Prepare the adjusting entries needed at July 31, 2014.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial and managerial accounting

ISBN: 978-1118016114

1st edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

Question Posted: