On December $31,$ the adjusted trial balance of Johnson Employment Agency shows the

following selected data.

Accounts Receivable $$24,500$ Service Revenue $$92,500$

Interest Expense $8,300$ Interest Payable $2,000$

Analysis shows that adjusting entries were made to $(1)$ accrue $$5,000$ of service revenue and $(2)$

accrue $$2,000$ interest expense.

Instructions

$($a$)$ Prepare the closing entries for the temporary accounts shown above at December $31.$

$($b$)$ Prepare the reversing entries on January $1.$

$($c$)$ Post the entries in $($a$)$ and $($b$).$ Rule and balance the accounts. $($Use T accounts.$)$

$($d$)$ Prepare the entries to record $(1)$ the collection of the accrued revenue on January $10$ and $(2)$

the payment of all interest due $($$$3,000)$ on January $15.$

$($e$)$ Post the entries in $($d$)$ to the temporary accounts