On December 31, the adjusted trial balance of Blue Spruce Employment Agency shows the following selected...

Transcribed Image Text:

On December 31, the adjusted trial balance of Blue Spruce Employment Agency shows the following selected data. Accounts Receivable $24,900 Service Revenue $92,400 Interest Expense 8,200 Interest Payable 1,600 Analysis shows that adjusting entries were made to (1) accrue $6,500 of service revenue and (2) accrue $1,600 interest expense. Prepare the reversing entries on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Jan. 1 Service Revenue Jan. 1 (To reverse the accrued service revenue.) Interest Expense (To reverse the accrued interest expense.) Debit 6500 1600 Credit 6500 1600 Post the entries in (a) and (b), and balance the accounts. (Post the entries in the order presented in both the previous part.) Accounts Receivable New Year New Year Service Revenue New Year New Year Interest Payable Interest Expense On December 31, the adjusted trial balance of Blue Spruce Employment Agency shows the following selected data. Accounts Receivable $24,900 Service Revenue $92,400 Interest Expense 8,200 Interest Payable 1,600 Analysis shows that adjusting entries were made to (1) accrue $6,500 of service revenue and (2) accrue $1,600 interest expense. Prepare the reversing entries on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Jan. 1 Service Revenue Jan. 1 (To reverse the accrued service revenue.) Interest Expense (To reverse the accrued interest expense.) Debit 6500 1600 Credit 6500 1600 Post the entries in (a) and (b), and balance the accounts. (Post the entries in the order presented in both the previous part.) Accounts Receivable New Year New Year Service Revenue New Year New Year Interest Payable Interest Expense