Question

ng entries monthly. Journalize the adjusting entries needed as of January 31. (Record debits firs mal entry table.) * More Info - X a. Business receives $2.500 on January 1 for 10-month service contract for the period January 1 through October 31. Assume services are performed evenly each month throughout the term of the contract b. Total salaries for all employees is $4,000 per month Employees are paid on the 1st and 15th of the month c. Work performed but not yet billed to customers for the month is $950. d. The company pays interest on its $20.000 9% note payable of $150 on the first day of each month -06 Spring 2020 - X ) is based on Miller Nobles Moto Hongres Mosco. Homer's Resourong

Answer 1

Date	Account title and explanation	Debit	Credit
Jan 31.	Unearned revenue	$250
	To service revenue		$250
	( Being recorded the service revenue that was collected in advance)
Jan.31	salaries expenses	$2000
	To salaries payable		$2000
	( Being salaries expenses accrued)
Jan.31	Account receivables	$950
	To service revenue		$950
	( Being service revenue accrued)
Jan.31	interest expenses	$150
	To interest payable		$150
	( Being interest expenses accrued)

Note:-

A:- unearned revenue for 1 month = $2500/10 month = $250

B:- service expenses = $4000/2 = $2000

As salaries are paid on 1st and 15th of the month.