Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. On April 1, the company hired an attorney for a flat monthly fee of $1,500. Payment for April legal services was made by the

image text in transcribed

a. On April 1, the company hired an attorney for a flat monthly fee of $1,500. Payment for April legal services was made by the company on May 12. b. As of April 30, $1,335 of interest expense has accrued on a note payable. The full interest payment of $4,005 on the note is due on May 20. c. Total weekly salaries expense for all employees is $15,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3. The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses. (Do not round intermediate calculations.) * Answer is not complete. No General Journal Credit Date Apr 30 Debit 1,500 Legal services expense Legal services payable 1,500 May 12 1.500 Prepaid Interest Legal services expense 1,500 Apr 30 1,335 Interest expense Interest payable 1,335 May 20 No Transaction Recorded Apr 30 Depreciation expense Revenue May 03 6,000 Salaries expense Salaries payable 6,000 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Systems Exam Questions And Explanations

Authors: Ph.D. Gleim, Irvin N., Ph.D. Hillison, William A., Grady M. Irwin

17th Edition

1581949278, 978-1581949278

More Books

Students also viewed these Accounting questions