Question
On December 31, the adjusted trial balance of Cisneros Employment Agency shows the following selected data. Accounts Receivable$23,800 Service Revenue$93,400 Interest Expense 8,900 Interest Payable3,900
On December 31, the adjusted trial balance of Cisneros Employment Agency shows the following selected data.
Accounts Receivable$23,800 Service Revenue$93,400
Interest Expense 8,900 Interest Payable3,900
Analysis shows that adjusting entries were made to (1) accrue $4,300of service revenue and (2) accrue $3,900interest expense.
Prepare the closing entries for the temporary accounts shown above at December 31.
Prepare the reversing entries on January 1.
Post the entries in (a) and (b)
Accounts Receivable
Service Revenue
Interest Payable
Interest Expense
Prepare the entries to record the (1) collection of the accrued revenue on January 10 and (2) the payment of all interest due ($4,900) on January 15.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
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