zheng Corporation had the following selected transactions in the month of March. The company adjusts its accounts monthly.

1. The company has an 8%, $12,000 bank loan payable due in one year. Interest is payable on the first day of each following month.

2. At the end of March, the company earned $250 interest on its investments. The bank deposited this amount in Zheng's cash account on April 1.

3. Zheng has five employees who each earn $200 a day. Salaries are normally paid on Fridays for work completed Monday through Friday of the same week. Salaries were last paid on Friday, March 27. March 31 falls on a Tuesday this year. Salaries will be paid next on Friday, April 3.

4. At the end of March, the company owed the utility company $550 and the telephone company $200 for services received during the month. These bills were paid on April 10. (Hint: Use the Office Expense account for the telephone services.)

5. At the end of March, Zheng has earned service revenue of $3,000 that it has not yet billed. It bills its clients for this amount on April 4. On April 30, it collects $2,000 of this amount due.

Instructions

(a) Foreachoftheabovesituations,preparetheadjustingjournalentryrequiredatMarch31. (b) For each of the above situations, prepare the journal entry to record the subsequent cash transaction in April