FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Consider the following situations:
a.
b.
C.
d.
Business receives
$3,800
on
January
1 for 10-month service contract for the period
January
1 through
October
31. (Assume services are performed evenly each month throughout the term of the contract.)
Total salaries for all employees is
$3,200
per month. Employees are paid on the 1st and 15th of the month.
Work performed but not yet billed to customers for the month is
$1,000.
The company pays interest on its
$15,000,
8%
note payable of
$100
on the first day of each month.
Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of
January
31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
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Transcribed Image Text:Consider the following situations: a. b. C. d. Business receives $3,800 on January 1 for 10-month service contract for the period January 1 through October 31. (Assume services are performed evenly each month throughout the term of the contract.) Total salaries for all employees is $3,200 per month. Employees are paid on the 1st and 15th of the month. Work performed but not yet billed to customers for the month is $1,000. The company pays interest on its $15,000, 8% note payable of $100 on the first day of each month. Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
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