On December 31, the adjusted trial balance of Shihata Employment Agency shows the following selected data.

Analysis shows that adjusting entries were made to (1) accrue NT$5,000 of service revenue and (2) accrue NT$2,200 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 (NT$3,000) on January 15.

e. Post the entries in

(d) to the temporary accounts.

Transcribed Image Text:

Accounts Receivable Interest Expense NT$24,500 Service Revenue NT$92,500 7,700 Interest Payable 2,200