[ivory5130]

I am having problems with adjustments to get an adjusted trial balance. The first question is :

1. As of Dec. 31, employees had earned 900 of unpaid and unrecorded salaries. The next payday is January 4, at which time 1600 of salaries will be paid.

2. The notes paable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at Dec 31 is 1250. The next intest payment, at an amount of 1500 is due on Jan 15.

3.Analysis of the unearned member fees acct shows 5600 remaining unearned at Dec 31.

4. In addition to the member fees included in the revenue acct balance, the company has earned another 9100 un unrecorded fees that will be collected on Jan 31. The company is also expected to collect 8000 on that same day for new fees earned in January.

How do I even begin to do this?

[Maranon2]

Adjusting entries are journal entires that bring the accounts up to date at the end of the accounting period. Here I am assuming that the end of your accounting period is Dec 31.

1. As of Dec. 31, employees had earned 900 of unpaid and unrecorded salaries. The next payday is January 4, at which time 1600 of salaries will be paid.

As of Dec 31, the end of the accounting period, you have 900 dollars of unpaid and unrecorded salaries. You don’t need to worry about the 1600 dollars since your are only doing the adjusting entry for the time unitl Dec 31.

Dr. Salaries Expense 900
Cr. Salaries Payable 900

2. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at Dec 31 is 1250. The next intest payment, at an amount of 1500 is due on Jan 15.

The amount of unrecorded interest as of Dec 31st is 1250. You will actually pay the total which is the adjusting entry amount + additional amount of interest on the next due date.

Dr. Interest Expense 1250
Cr. Interest Payable 1250

3.Analysis of the unearned member fees acct shows 5600 remaining unearned at Dec 31.

Here you did not provide the information to do the journal entry. How much was the Unearned Member Fees originally? You will take the Original Unearned Member Fees subtract the remaining unearned fees to get the amount you actually earned and that is the amount you will use for the adjusting entry.

Dr. Unearned Member Fees
Cr. Member Fee Revenue or Fees Earned

3. In addition to the member fees included in the revenue acct balance, the company has earned another 9100 un unrecorded fees that will be collected on Jan 31. The company is also expected to collect 8000 on that same day for new fees earned in January.

On this one again, you are doing your adjusting entries for all activity up to Dec 31st. So the additional information about the 8000 you are expecting to receive in January does not apply. It hasn’t happened yet! The information provided lets you know that they have earned the money but are not collecting it until Jan 31st. This is a hint that you should debit Accounts Receivable.

Dr. Accounts Receivable 9100
Cr. Fees Earned 9100

Hope this helps - Stephanie