Question
On April 1, the company retained an attorney for a flat monthly fee of $2,500. Payment for April legal services was made by the company
On April 1, the company retained an attorney for a flat monthly fee of $2,500. Payment for April legal services was made by the company on May 12. A $300,000 note payable requires 9.0% annual interest, or $2,250, 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, $750 of interest expense has accrued. Total weekly salaries expense for all employees is $13,000. 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.
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