James Charles is the new owner of Ace Computer Services. At the end of August 2020, his first month of ownership, James is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.

1. a. At August 31, James owed his employees $1,900 in wages

that will be paid on September 1.

b. At the end of the month, he had not yet received the months utility bill. Based on past experience, he estimated the bill would be approximately $600.

c. On August 1, James borrowed $30,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%.

d. A telephone bill in the amount of $117 covering August charges is unpaid at August 31.

Instructions:

Prepare the adjusting journal entries as of August 31, 2020, based on the information above.