Zheng Corporation had the following selected transactions in the month of March.

Question

Zheng Corporation had the following selected transactions in the month of March. The company adjusts its accounts monthly I. The company has a 12%, $12,810 bank loan payable due in one year. Interest is payable on the first day of each following month and was last paid on March 1 2. At the end of March, the company earned $320 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 $410 a day. Salaries are normally paid on Mondays for work completed Monday through Friday of the previous week. Salaries were last paid on Monday March 26. March 31 falls on a Saturday this year. Salaries will be paid next on Monday, April 2 4. At the end of March, the company owed the utility company $610 and the telephone company $200 for services received during the month. These bills were paid on April 10. (Hint: Use the Utilities Expense account for the utility and telephone services.) 5. At the end of March, Zheng has earned service revenue of $3,100 that it has not yet billed. It bills its clients for this amount on April 4. On April 30, it collects $2,350 of this amount due.

Explanation / Answer

No. Date Title and description Debit ($) Credit ($) 2 Apr 1 Cash 320 Interest Receivable 320 5 Apr 4 No entry 0 no entry 0 Apr 30 Cash 2,350 Account receivable 2,350

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