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a. On April 1, the company hired an attorney for April for a flat fee of $1,000. Payment for April legal services was made by the company on May 12 b. As of April 30, $2,209 of Interest expense has accrued on a note payable. The full interest payment of $6,628 on the note is due on May 20 c. Total weekly salaries expense for all employees is $12,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, 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 April 30 adjusting entry and the subsequent entry during May to record payment of the accrued expenses. Note: Do not round Intermediate calculations.

a. On April 1, the company hired an attorney for April for a flat fee of $1,000. Payment for April legal services was made by the company on May 12 b. As of April 30, $2,209 of Interest expense has accrued on a note payable. The full interest payment of $6,628 on the note is due on May 20 c. Total weekly salaries expense for all employees is $12,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, 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 April 30 adjusting entry and the subsequent entry during May to record payment of the accrued expenses. Note: Do not round Intermediate calculations.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 3PA
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a. On April 1, the company hired an attorney for April for a flat fee of $1,000. Payment for April legal services was made by the company on May 12 b. As of April 30, $2,209 of Interest expense has accrued on a note payable. The full interest payment of $6,628 on the note is due on May 20 c. Total weekly salaries expense for all employees is $12,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, 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 April 30 adjusting entry and the subsequent entry during May to record payment of the accrued expenses. Note: Do not round Intermediate calculations.
Transcribed Image Text:a. On April 1, the company hired an attorney for April for a flat fee of $1,000. Payment for April legal services was made by the company on May 12 b. As of April 30, $2,209 of Interest expense has accrued on a note payable. The full interest payment of $6,628 on the note is due on May 20 c. Total weekly salaries expense for all employees is $12,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, 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 April 30 adjusting entry and the subsequent entry during May to record payment of the accrued expenses. Note: Do not round Intermediate calculations.
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