On December 31, the adjusted trial balance of Select Employment Agency shows the following selected data. Accounts
Question:
Accounts Receivable ......... $24,500
Interest Expense .......... 8,300
Service Revenue .......... $93,800
Interest Payable .......... 1,300
Analysis shows that adjusting entries were made to
(1) Accrue $5,000 of service revenue
(2) Accrue $1,300 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.
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Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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