Question

i. Accrued liabilities Example: Your company pays it s workers every Friday. Year-end, 12/31/09, falls on a Wednesday and it is estimated that employees have earned salaries of $47,250, for Monday through Wednesday, 12/31/09. DR: CR: r. Accrued assets Example: As of 12/31/09, Joe and Bob, CPAs, had provided audit and tax services to its clients in the amount of $23,000. The amount has been earned but bills have not been sent to clients. DR: CR: C. Other estimated items Example: Jax, Inc. purchased equipment on June 30, 2009 that cost $30,000. The equipment has an estimated useful life of 5 years and a $5000 salvage value. Jax uses straight-line depreciation and has not depreciated this asset during 2009. (Year end is 12-31-09) DR: CR: Calculation: Example: Bad Debt Expense (Uncollectible Accounts Expense) is estimated to be $7,000. 36

Answer 1

Journal entries

date	account and explanation	debit	credit
Dec 31	Salaries expense	47250
	Salaries payable		47250
	(To record accrued salaries)
Dec 31	Account receivable	23000
	Service revenue		23000
	(To record service revenue)
Dec 31	Depreciation expense (30000-5000/5)*6/12	2500
	Accumulated depreciation-equipment		2500
	(To record dep)