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    cute_panda05's Avatar
    cute_panda05 Posts: 37, Reputation: 1
    Junior Member
    		  
    #1

    Apr 9, 2012, 04:09 AM
    Adjusting entries
    The mortgage contract provides for a monthly payment of $1000 plus accrued interest. The June payment was not made. Interest of $280 is accrued on the mortgage...


    Please help...
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Apr 9, 2012, 06:19 AM
    Debit Interest Expense for 280
    Credit Interest Payable for 280
    cute_panda05's Avatar
    cute_panda05 Posts: 37, Reputation: 1
    Junior Member
    		  
    #3

    Apr 9, 2012, 04:23 PM
    Thanks so I just ignored the mortgage $1000??
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #4

    Apr 9, 2012, 05:44 PM
    Yes, the mortgage of 1,000 is already listed as Mortgage Payable and is not affected until the payment is made.
    cute_panda05's Avatar
    cute_panda05 Posts: 37, Reputation: 1
    Junior Member
    		  
    #5

    Apr 9, 2012, 06:02 PM
    Thank you, could u please help me with another question..

    Paid the electricity expense of $8600, previously recorded...
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #6

    Apr 9, 2012, 06:13 PM
    Debit Electricity Payable or Accounts Payable for 8,600 (it depends on how the original entry was recorded)
    Credit Cash for 8,600
    winnie158's Avatar
    winnie158 Posts: 29, Reputation: 1
    New Member
    		  
    #7

    Apr 9, 2012, 06:17 PM
    Thanks so much for your help!
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