Splish Brothers Inc. began operations in July $2022.$ At the end of the month, the company prepares monthly financial statements. It has the following information for the month.

At July $31,$ the company owed employees $$1,612$ in salaries that the company will pay in August.

On July $1,$ the company borrowed $$24,800$ from a local bank on a $10-$year note. The annual interest rate is $12\%.$ Interest is paid annually.

Service revenue unrecorded in July totaled $$2,976.$

Prepare the adjusting entries needed at July $31,2022.($Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

No$.$

$1.$

$2.$

$3.$

Account Titles and Explanation

Debit

Credit