Accrual Examples transactions and Adjustments Borrowed $10.000 from the bank on 1 Aug 2019. Annual interest rate is 12% and term is one year AJE 1: Adjust for the interest expense incurred from 1 Aug 2019 through 31 Dec 2019.AJE 2: In December,$5,000 of services were performed but the client was not billed for these services as of 31 Dec 2019.AJE 3: In December, employees worked but were not paid as of 31 Dec 2019. Owe employees $2000 for these unpaid wages MORE ON SALARIES When we "owe" the employees, it means we have not yet paid them. Therefore a liability (salaries payable) must be created. Journal entry when OWE the employees: Salaries Expense Salaries Payable Journal entry when PAY the employees next period: 2000 2000 equired. Show the accounting ecuation effects and prepare journal entries on the date of the transaction Prepare adjusting journal entries on 31 Dec 2019.

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First lets analyze the effects of each transaction on the accounting equation 1 Borrowed 10000 from ... View the full answer