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

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?

Quote:

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Originally Posted by sam33

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

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It just say the mortgage interest rate is 7% per year, interest has been paid to July 31, 2006

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)