On December 31, the adjusted trial balance of Goode Employment Agency shows the following selected data:

Analysis shows that adjusting entries were made to

(a) accrue \(\$ 5,000\) of commission revenue and

(b) accrue \(\$ 2,000\) interest expense.
\section*{Instructions}

(a) Prepare the closing entries for the temporary accounts 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 commissions on January 10 and (2) the payment of all interest due \((\$ 2,700\) ) on January 15.

(e) Post the entries in

(d) to the temporary accounts.

Transcribed Image Text:

Accounts Receivable Interest Expense $5,000 Commission Revenue $97,000 7,800 Interest Payable 2,000