Question

ADJUSTING JOURNAL ENTRIES

following transactions

a) estimated electricity usage at $300 for December, to be in January next year

b) on September 1 of current year, loaned $5900 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 13%

c) owed wages to 14 employees who worked four days at $200 each per day at end of the current year. Company will pay employees at end of first week of next year

Answer 1

Solution

Date	General Journal	Debit	Credit
Dec-31	Utilities expense	$              300.00
	Utilities payable		$        300.00
	(To record utilities expense accrued)
Dec-31	Interest receivable	$              255.67*
	Interest revenue		$        255.67
	(to record interest revenue earned but not received)
Dec-31	Salaries expense	$        11,200.00**
	Salaries payable		$ 11,200.00
	(To record salaries expense)

*(5900 x 13%)/12 x 4

**14 x 5 x $22