Exercise 3-9 Preparing adjusting entries-accrued revenues and expenses LO P1 a.
ID: 2539199 • Letter: E
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Exercise 3-9 Preparing adjusting entries-accrued revenues and expenses LO P1 a. The company provided $2.900 in services to customers that are expected to pay the company sometime in January company's year-end. b. Wage expenses of $1,900 have been incurred but are not paid as of December 31. C. The company has a $5.900 bank loan and has incurred (but not recorded) 8% interest expense of $472 for the year ended December 31. The company will pay the $472 interest in cash on January 2 following the company's year-end d. The company contracted with a firm for lawn services to be provided at a monthly fee of $590 with payment occurring on the 15th of the following month. Payment for December services will occur on January 15 following the company's year-end. e. The company has earned $290 in interest revenue from investments for the year ended December 31. The interest revenue will be received on January 15 following the company's year-end f. Salary expenses of $990 have been earned by supervisors but not paid as of December 31. Prepare year-end adjusting journal entries as of December 31, 2017, for each of the above separate cases. View transaction list Journal entry worksheet 3 4 The company provided $2,900 in services to customers that are expected to pay the company sometime in January following the company's year-end.Explanation / Answer
Transaction General Journal Debit Credit a. Accounts Receivable $ 2,900 Service Revenue $ 2,900 (To record sercice revenue earned) b. Wages Expenses 1,900 Wages Payable 1,900 (To record wages occurred) c. Interest expenses 472 Interest Payable 472 (To record interest expenses occurred) d. Lawn service expenses 590 Lawn service Payable 590 (To record lawn sercice payable) e. Intererst receivable 290 Interest Revenue 290 (To record interest earned) f. Salary Expenses 990 Salary Payable 990 (To record salary payable)
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