Question

On December 31, the adjusted trial balance of Oslo Employment Agency shows following selected data.
Accounts Receivable ............. $24,000
Commission Revenue ............ $92,000
Interest Expense .............. 7,800
Interest Payable ............... 1,500
Analysis shows that adjusting entries were made to
(1) Accrue $4,500 of commission revenue
(2) Accrue $1,500 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), Rule and balance the accounts. (Use T accounts.)
(d) Prepare the entries to record
(1) The collection of the accrued commissions on January;
(2) The payment of all interest due ($2,500) on January 15.
(e) Post the entries in (d) to the temporary accounts.



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  • CreatedMarch 11, 2013
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