View Full Version : Adjusting entries
sam33
Feb 25, 2007, 07:19 PM
How to adjust these entries
Journalize at August 31, 2006
1. Salaries accrued to the end of August were $1,400
2. The August utility bill of $1,500 is unrecorded and unpaid
3. mortgage interest rate is 7% per year. Interest has been paid to July 31, 2006
CaptainForest
Feb 25, 2007, 08:05 PM
1)
Dr. Salaries Expense 1,400
Cr. Salaries Payable 1,400
2)
Dr. Utility Expense 1,500
Cr. Utilities Payable 1,500
3)
More information is required. 7% of what?
sam33
Feb 25, 2007, 08:35 PM
how to adjust these entries
journalize at august 31, 2006
1. Salaries accrued to the end of august were $1,400
2. The august utility bill of $1,500 is unrecorded and unpaid
3. mortgage interest rate is 7% per year. interest has been paid to july 31, 2006
It just say the mortgage interest rate is 7% per year, interest has been paid to July 31, 2006
CaptainForest
Feb 28, 2007, 01:33 AM
There has to be some other information perhaps in an earlier part of the question, or a little summary at the beginning?
You must record 1 month's worth of interest expense (Aug 1 – Aug 31)