E3-8 (Adjusting Entries) Andy
Roddick is the new owner of Ace Computer Services. At the end of August 2014,
his first month of ownership, Roddick is trying to prepare monthly financial
statements. Below is some information related to unrecorded expenses that the
business incurred during August.
1. At
August 31, Roddick owed his employees $1,900 in wages that will be paid on
September 1.
2. At
the end of the month he had not yet received the month's utility bill. Based on
past experience, he estimated the bill would be approximately $600
3. On
August 1, Roddick borrowed $30,000 from a local bank on a 15-year mortgage. The
annual interest rate is 8%
4. A
telephone bill in the amount of $117 covering August charges is unpaid at August
31
Instructions
Prepare the adjusting journal entries as of August 31, 2014.
Prepare the adjusting journal entries as of August 31, 2014.
TUTORIAL
PREVIEW
Prepare the adjusting journal entries as of August
31, 2014.
|
1
|
Salaries and Wages
Expense
|
1,900
|
|
|
Salaries and Wages
Payable
|
1,900
|
||
|
To record wages payable
at 08/31
|
|||
