Adjusting entries
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The bookkeeper for Wooster Company asks you to prepare the following accrued adjusting entries at December 31.
1. Interest on notes payable of $400 is accrued.
2. Services provided but not recorded total $ 1,250.
3. Salaries earned by employees of $900 have not been recorded.
Using the following accounts titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries Expense, and Salaries Payable.
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Solution Summary
The solution explains how to prepare the journal entries for adjusting entries.
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1. Interest on notes payable of $400 is accrued.
When interest is accrued, interest expense is recored and since the payment has not been made it is a liability recorded under interest payable. The adjusting entry is
Dec 31 ...
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