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    kizzyb's Avatar
    kizzyb Posts: 31, Reputation: 1
    Junior Member
     
    #1

    Mar 6, 2006, 10:02 AM
    Accounting
    (a) Weekly salaries of 9,000 are paid on MOnday for the preceding week. June 30 20x1, was a Wednesday.
    Dr. salries expense 5400
    Cr. Salaries payable 5400

    (b) A one-year note payable for 30,000 is due on December 31, 20x1. The 13,5% note was signed on December 31, 20x0. All interest will be paid on the due date.
    Dr. interest income 405,000
    Dr. Inrest Payable 405,000

    (c) Montly rent on a branch location is 6000. Rent for June will be paid on July 15.

    Rent expense 6000
    rent income 6000

    reversing
    (a)Salaries payable 5400
    Salaries Expense 5400

    (b) inrest payable 405,000
    interest income 405,000

    (c) rent income 6000
    rent expense 6000
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #2

    Mar 6, 2006, 02:30 PM
    I am assuming you year end is June 30
    A - correct

    B -
    Dr. Interest Expense 2,025
    Cr. Interest Payable 2,025
    Calculation: 30,000 x .135 x 6 / 12 = 2,025

    C-
    Dr. Rent expense 6000
    Cr. Rent payable 6000

    reversing
    A - correct

    B -
    Dr. Interest Payable 2,025
    Cr. Interest Expense 2,025

    C-
    Dr. rent payable 6000
    Cr. Rent expense 6000

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