Splish Brothers Inc. began operations in July 2020. At the end of the month, the company prepares monthly financial statements. It has the following information for the month.1. At July 31, the company owed employees $1,600 in salaries that the company will pay in August.2. On July 1, the company borrowed $26,000 from a local bank on a 10-year note. The annual interest rate is 15%.3. Service revenue unrecorded in July totaled $2,600.Prepare the adjusting entries needed at July 31, 2020.

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Answered: Splish Brothers Inc. began operations…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...

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Splish Brothers Inc. began operations in July 2020. At the end of the month, the company prepares monthly financial statements. It has the following information for the month.

1.		At July 31, the company owed employees $1,600 in salaries that the company will pay in August.
2.		On July 1, the company borrowed $26,000 from a local bank on a 10-year note. The annual interest rate is 15%.
3.		Service revenue unrecorded in July totaled $2,600.

Prepare the adjusting entries needed at July 31, 2020.

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Adjusting Entries:

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