Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a revenue when ..we veen on the November 30, 2020, financial state- I was made on November 30, 2020? Problem 3-4A Preparing adjusting (monthly) and

image text in transcribed
a revenue when ..we veen on the November 30, 2020, financial state- I was made on November 30, 2020? Problem 3-4A Preparing adjusting (monthly) and subsequent cash entries-accrued expenses Lo4 Envirocan Resources prepares adjusting entries monthly. In reviewing the accounts on March 31, Envirocan Resources discovered the following: a. Interest of $1,080 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 $33,150. The $33,150 plus salaries of $22,200 for the first four days of April were paid on April 4. c. The March telephone bill for $470 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 $4,500 per month had not been paid for February, March, or April. Rent of $4,500 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 $440,000. Commissions are unrecorded and unpaid at March 31. Commissions are paid on the 15th 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. L04

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

Public Sector Accounting And Auditing In EuropeThe Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

3rd Edition

1137461330, 9781137461339

More Books

Students also viewed these Accounting questions