a. On April 1, the company retained an attorney for a flat monthly fee of $2,000. Payment for...
Question:
a. On April 1, the company retained an attorney for a flat monthly fee of $2,000. Payment for April legal services was made by the company on May 12
b. A $1,000,000 note payable requires 8.3% annual interest, or $6917 to be paid at the 20th day of each month. The interest was last paid on April 20 and the next payment is due on May 20. As of Apnil 30, $2,306 of interest expense has accrued
c. Total weekly salaries expense for all employees is $8,000 This amount is paid at the end of the day on Friday of each five-day workweek April 30 fails on Tuesday of this year, which means that the employees had worked two days since the last payday. The next payday is May 3 The above three separate situations require adjusting journal entries to prepare financial statements as of April 30 For each situation, present both the Apnil 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses. (Use 360 days a year. Do not round intermediate calculations and round your final answers to the nearest dollar amount.)
On April 1, the company retained an attorney for a flat monthly fee of $2,000. Payment for April legal services was made by the company on May 12.
| Date | General Journal | Debit | Credit |
| Apr 30 | |||
Accrual Accounting:
The accrual basis of accounting records business transactions when they actually occur, which involves accruing revenue when earned and expenses when incurred. This is different from the cash basis of accounting whereby transactions are recorded when cash is received or paid.
Answer and Explanation: 1
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View this answera. The journal entries required to record the legal fees accrual and the payment of legal fees are shown below:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| Apr... |
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