Question

Alberto Rock is the new owner of Summer Computer Services Inc. At the end of August 2014, his first month of ownership, Alberto is trying to prepare monthly financial statements. Information follows for transactions that occurred in August:
1. At August 31, Alberto owed his employees $6,000 in wages that would be paid on September I.
2. At the end of the month, he had not yet received the month's utility bill. Based on previous experience, he estimated the bill would be $900.
3. On August I, Alberto invested $60,000 of the company's funds with a local bank in a 180 day guaranteed investment certificate. The annual interest rate is 3%.
4. Rent of $1,200 for September was paid on August 31 and charged to rent expense.
Instructions
Use the information to prepare the adjusting entries as at August 31, 2014.


$1.99
Sales1
Views67
Comments0
  • CreatedSeptember 18, 2015
  • Files Included
Post your question
5000