signment $i$

Exercise $3-16$ Adjustments and subsequent cash entries for accrued expenses LO$4$

The following three situations require adjusting journal entries to prepare financial statements as of April $30,2023.$ For each situation, present the adjusting entry and the entry that would be made to record the payment of the accrued liability during May $2023.$

a$.$ The company has a $$370,000$ note payable that requires $0\mathrm{.}3\%$ interest to be paid each month on the $20$ th of the month. The interest was last paid on April $20$ and the next payment is due on May $20.$

b$.$ The total weekly salaries expense for all employees is $$13,600.$ This amount is paid at the end of the day on Friday of each week with five working days. April $30$ falls on a Thursday this year, which means that the employees had worked four days since the last payday. The next payday is May $1.$

c$.$ On April $1,$ the company retained a lawyer at a flat monthly fee of $$3,600.$ This amount is payable on the $12$ th of the following month.

Journal entry worksheet