$10$

$($monthly$)$ and subsequent cash entries$-$accrued expenses LO$4$

points

Envirocan Resources prepares adjusting entries monthly. In reviewing the accounts on March $31,$ Envirocan Resources discovered the following:

a$.$ Interest of $$1,250$ had accrued on the note payable as at March $31.$ It is to be paid on April $2.$

b$.$ Unpaid and unrecorded salaries at March $31$ totalled $$31,850.$ The $$31,850$ plus salaries of $$20,900$ for the first four days of April were paid on April $4.$

c$.$ The March telephone bill for $$340$ is unpaid and unrecorded at March $31.$ It is to be paid on April $15.$

d$.$ Envirocan normally pays rent in three$-$month installments. At March $31,$ rent of $$3,200$ per month had not been paid for February, March, or April. Rent of $$3,200$ was correctly accrued at the end of February. The balance owing plus rent for May, June, and July was paid on April $26.$

e$.$ Envirocan pays commissions to the technicians at the rate of $4\%$ of services performed. During March, total services performed were $$310,000.$ Commissions are unrecorded and unpaid at March $31.$ Commissions are paid on the $15$ th of the following month.

Required:

Using the information provided above, prepare the monthly adjusting journal entries at March $31$ along with the appropriate subsequent cash entries.

Adjusting journal entries

View transaction list

View journal entry worksheet

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[,1,$Mar $31,$Interest expense,$1,250]]$

$)$

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