3-3

Exercise 3-2 Classifying adjusting entries In the blank space beside each adjusting entry, enter the letter of the explanation A through F that most closely describes the entry. A. To record this period's depreciation expense. D. To record accrued interest revenue. B. To record accrued salaries expense. E. To record accrued interest expense. C. To record this period's use of a prepaid F. To record the earning of previously unearned expense. income. 1. 2.208 2,208 2. 3,180 3,180 3. 19,250 Interest Expense ........ Interest Payable ............ Insurance Expense ....... Prepaid Insurance ............... Unearned Professional Fees .... Professional Fees Earned .. Interest Receivable.. Interest Revenue ............ Depreciation Expense Accumulated Depreciation ............ Salaries Expense .. ... Salaries Payable .... 19.250 4. 3,300 3.300 5. 38,217 38,217 6. 13,280 13,280 Exercise 3-3 Adjusting and paying accrued wages C1 P1 Pablo Management has five part-time employees, each of whom earns $250 per day. They are normally paid on Fridays for work completed Monday through Friday of the same week. Assume that December 28, 2017, was a Friday, and that they were paid in full on that day. The next week, the five employees worked only four days because New Year's Day was an unpaid holiday. a. Assuming that December 31, 2017, was a Monday, prepare the adjusting entry for wages expense that would be recorded at the close of that day. b. Assuming that January 4, 2018, was a Friday, prepare the journal entry that would be made to record payment of the employees' wages for that week