iny,uuaiy U, wien Lovrek pays the payroll. ssume the company does use reversing

Question

iny,uuaiy U, wien Lovrek pays the payroll. ssume the company does use reversing entries. Prepare the December 31 adjusting entry, the January 1 reversing entry, and the entry on Monday, January 6, when Lovrek pays the payroll. E4-19 On December 31, the adjusted trial balance of Shihata Employment Agency shows P the following selected data. Accounts Receivable Interest Expense $24,500 7,700 Service Revenue $92,500 Interest Payable 2,200 Analysis shows that adjusting entries were made to (1) accrue $5,000 of service revenue and (2) accrue $2,200 interest expense Instructions (a) Prepare the closing entries for the temporary accounts shown above at December 31. (b) Prepare the reversing entries on January 1 (c) Post the entries in (a) and (b). Underline and balance the accounts. (Use T-accounts.) (d) Prepare the entries to record (1) the collection of the accrued revenue on January 10 and (2) the payment of all interest due ($3,000) on January 15. e) Post the entries in (d) to the temporary accounts. EXERCISES: SET B AND CHALLENGE EXERCISES

Explanation / Answer

c & e.

a. Closing Journal Entries Date Particulars Dr Cr 31-Dec Accounts Receivables 5,000 Service Revenue 5,000 31-Dec Interest Expense 2,200 Interest Payable 2,200

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.