(Adjusting Entries) Bjorn Borg is the new owner of Ace Computer Services. At the end of August...
Question:
(Adjusting Entries) Bjorn Borg is the new owner of Ace Computer Services. At the end of August 2005, his first month of ownership, Bjorn is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.
1. At August 31, Mr. Borg owed his employees $1,900 in wages that will be paid on September 1.
2. At the end of the month he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $600.
3. On August 1, Mr. Borg borrowed $30,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%.
4. A telephone bill in the amount of $117 covering August charges is unpaid at August 31. Prepare the adjusting journal entries as of August 31, 2005, suggested by the information above.
Step by Step Answer:
1 2 Wages Expense Wages Payable 4 Uti...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
William Bryant is the new owner of Ace Computer Services. At the end of August 2012, his first month of ownership, Bryant is trying to prepare monthly financial statements. Below is some information...
-
Andy Roddick is the new owner of Ace Computer Services. At the end of August 2008, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information...
-
Alex Roddick is the new owner of Ace Computer Services. At the end of August 2017, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information...
-
Use the approximations obtained in Exercise 3 to approximate the following integrals, and compare your results to the actual values. a. b. c. d. (cos --2 sin ) dr (x cos x2 + er cos ex) dx
-
Give the formula for the simple deposit multiplier. If the required reserve ratio is 20 percent, what is the maximum increase in checking account deposits that will result from an increase in bank...
-
The table below illustrates the demand and supply schedules for seats on air flights between two cities: What are the market price and equilibrium quantity in this market? Now suppose that federal...
-
Give a superclass for the following three classes: car, airplane, tank.
-
Which of these two bonds offers the highest current yield? Which one has the highest yield to maturity? a. A 6.55 percent, 22-year bond quoted at 52.000 b. A 10.25 percent, 27-year bond quoted at...
-
! Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct...
-
Derive an expression for the thermal resistance through a hollow spherical shell of inside radius ri and outside radius ro having a thermal conductivity k.
-
(Analyze Adjusted Data) A partial adjusted trial balance of Piper Company at January 31, 2005, shows the following. Answer the following questions, assuming the year begins January 1. (a) If the...
-
(Adjusting Entries) Selected accounts of Urdu Company are shown below. From an analysis of the T-accounts, reconstruct (a) The October transaction entries, and (b) The adjusting journal entries that...
-
On January 1, 2011, Monroe, Inc., purchased 10,000 shares of Brown Company for $250,000, giving Monroe 10 percent ownership of Brown. On January 1, 2012, Monroe purchased an additional 20,000 shares...
-
With regard to genes in pea plants that we have considered in this chapter, which statement(s) is/are not correct? A. The gene causing tall plants is an allele of the gene causing dwarf plants. B....
-
Albinism, a condition characterized by a partial or total lack of skin pigment, is a recessive human trait. If a phenotypically unaffected couple produce an albino child, what is the probability that...
-
Impact of September 11 on Air Travel in the United States. The Research and Innovative Technology Administrations Bureau of Transportation Statistics conducted a study to evaluate the impact of the...
-
The text describes how the detrimental symptoms associated with the disease phenylketonuria (PKU) are caused by a faulty gene. However, a change in diet can prevent these symptoms. Pick a trait of...
-
Upon the birth of your son, you open an account to fund his college education. You deposit $1,500 to open the account. Each year, on his birthday, you make another deposit, each being 15 percent...
-
Giving justifications for all your decisions, advise the board of the Matthew Humberstone Foundation Hospital on all aspects of marketing on social media covered in this chapter. Alternatively,...
-
A sample statistic will not change from sample to sample. Determine whether the statement is true or false. If it is false, rewrite it as a true statement.
-
Develop a model of a coal combustor fed with Illinois No. 6 coal, a bituminous coal, at 2 atm pressure. The atmospheric air for combustion is available at a temperature of 150C. The flow of...
-
What type of disclosure or accounting do you believe is necessary for the following items? (a) Because of a general increase in the number of labor disputes and strikes, both within and outside the...
-
The following information was described in a note of Canon Packing Co. During August, Holland Products Corporation purchased 311,003 shares of the Companys common stock which constitutes...
-
What are the major types of subsequent events? Indicate how each of the following subsequent events would be reported. (a) Collection of a note written off in a prior period. (b) Issuance of a large...
-
You placed $6,599 in a savings account today that earns an annual interest rate of 3 percent compounded annually. How much you will have in this account at the end of 2 years?
-
You're planning a trip to France. The current exchange rate is 1.21 dollars per euro. If you want to get 3,000, how many dollars do you have to pay? If you want to exchange $3,000, how many euros...
-
The exchange rate between euros and dollars is currently 0.83 euros per dollar. Inflation is expected to be 1% in Europe and 2% in the US. If relative purchasing power parity holds, what is the...
Study smarter with the SolutionInn App