Question
Base your answers to questions 1 and 2 on the following information: Here's a partial trial balance taken from the records of the Matthew Sparrow
Base your answers to questions 1 and 2 on the following information:
Here's a partial trial balance taken from the records of the Matthew Sparrow Company as of March 31, 20XX. The accounting records are maintained on an accrual basis.
Analysis of the accounts and records disclosed the following additional information:
Salaries due but unpaid $220
Rent includes $300 paid in March for April 300
Commission earned but not recorded 290
Fee income included fees received for work which has not yet been performed 475
Interest earned but not yet received 240
MATTHEW SPARROW COMPANY Partial Trial Balance March 31, 20XX
Fee Income 22,920
Commission Income 7,427
Salaries Expense 12,102
Office Supplies Expense 850
Rent Expense 2,925
1. To what account will the credit entry be posted for salaries due but unpaid?
A. Salaries Receivable
B. Prepaid Salaries
C. Salaries Expense
D. Salaries Payable
2. To what account will the debit entry be made to record the amount of interest earned but not received in March?
A. Prepaid Interest
B. Interest Payable
C. Interest Receivable
D. Interest Income
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