Question: On December 31 the adjusted trial balance of Cisneros Employment

On December 31, the adjusted trial balance of Cisneros Employment Agency shows the following selected data.
Accounts Receivable ........ $24,500
Interest Expense ........... 8,300
Service Revenue ........... $92,500
Interest Payable .......... 2,000

Analysis shows that adjusting entries were made to (1) accrue $5,000 of service revenue and (2) accrue $2,000 interest expense.

(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.

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  • CreatedJanuary 30, 2014
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