Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31. the adjusted trial balance of Splish Brothers Inc. shows the following selected data: Accounts receivable $9,230 Service revenue $107,100 Interest expense 12,670

image text in transcribed
image text in transcribed
image text in transcribed
On December 31. the adjusted trial balance of Splish Brothers Inc. shows the following selected data: Accounts receivable $9,230 Service revenue $107,100 Interest expense 12,670 Interest payable 6,950 Analysis shows that adjusting entries had been made, and included above, for (1) $9.230 of services performed but not billed, and (2) $6,950 of accrued but unpaid interest. Prepare the closing entries for the temporary accounts at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Dec. Date 31 (To close revenue account) Dec. 31 (To close expense account) e Textbook and Media List of Accounts Prepare the reversing entries on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1 (To reverse revenue accrual) Jan. 1 (To reverse interest expense accrual) e Textbook and Media List of Accounts Question Part Score --/2.5 Prepare the entries to record (1) collection of the service revenue on January 10, and (2) the $6,950 payment of interest due on January 15. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Enter the adjusted trial balance data in the four accounts using Taccounts, and post the entries from (a), (b) and (d). (Post entries in the order of journal entries presented in the previous part.) Accounts Receivable Interest Payable Service Revenue Interest Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Guide To Principles And Practice

Authors: J H Crowhurst

1st Edition

0304309052, 978-0304309054

More Books

Students also viewed these Accounting questions