turl the eompany\'s own loan) alaries ABC pays salaried employees on the 1st of
ID: 2339618 • Letter: T
Question
turl the eompany's own loan) alaries ABC pays salaried employees on the 1st of each month for the previous month's work. Therefore, employee work performed in December is not paid until January 1. ABC will pay employees (in total) $22,500 on January 1. Record the adjusting entry on December 31st. 2. Interest- ABC signed a six-month note payable in the amount of $25,000 on November 1. Both principle and interest are due at the end of the note term. The annual interest rate on the note is 8%. Record the adjusting entry on December 31st. Accrued receivables involve the recognition of revenue for goods or services transferred to customers before cash is received Examples: interest (on a loan to another entity) Interest-ABC loans $10,000 to Fred Corp. on July 1. The loan is a two year note with a 10% interest rate. Interest is due at the end of the note term. Record the adjusting entry on December 31st for ABC 1.Explanation / Answer
Date General Journal Debit Credit Dec, 31 Salaries and wages expense 22500 Salaries and wages Payable 22500 (To record salaries accrued) Dec, 31 Interest Expense 333.33 25000*0.08*(2/12) Interest Payable 333.33 (To record Interest Payable) Dec, 31 Interest Expense 500 10000*.1*(6/12) Interest Payable 500 (To record Interest Payable)
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