Exercise 3-2 Adjusting and paying accrued expenses LO P1 a. On April 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for April legal b, A $900,000 note payable requires 12% annual interest, or $9,000 to be paid at the 20th day of each c. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the day services was made by the company on May 12 month. The interest was last paid on April 20 and the next payment is due on May 20. As of April 30, $3,000 of interest expense has accrued on Friday of each five-day workweek. April 30 falls on Tuesday of this year, 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. (Use 360 days a year. Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 3 4 6 On April 1, the company retained an attorney for a flat monthly fee of $3,500 Payment for April legal services was made by the company on May 12. Note: Enter debits before credits Date General Journal Debit Credit Apr 30 Record entry Clear entry View general journal On April 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12. 1 2 Record the payment of legal fees. 3 A $900,000 note payable requires 12% annual interest, or $9,000 to be paid at the 20th day of each month. The interest was last paid on April 20 and the next payment is due on May 20. As of April 30, $3,000 of interest expense has accrued. 4 Record the payment of interest. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on Tuesday of this year, which means that the employees had worked two days since the last payday. The next payday is May 3. 5 6 Record the payment of salaries