On December 31, the adjusted trial balance of Splish Brothers Inc. shows the following selected data: Accounts receivable $9,610 Service revenue $109,000 Interest expense 12,740 Interest payable 6,610 Analysis shows that adjusting entries had been made, and included above, for (1) $9,610 of services performed but not billed, and (2) $6,610 of accrued but unpaid interest. a) Prepare the closing entries for the temporary accounts at December 31. b) Prepare the reversing entries on January 1. c) Prepare the entries to record (1) collection of the service revenue on January 10, and (2) the $6,610 payment of interest due on January 15. d) Enter the adjusted trial balance data in the four accounts using T accounts, and post the entries from (a), (b) and (d).

On December 31, the adjusted trial balance of Splish Brothers Inc. shows the following selected data: Accounts receivable $9,610 Service revenue $109,000 Interest expense 12,740 Interest payable 6,610 Analysis shows that adjusting entries had been made, and included above, for (1) $9,610 of services performed but not billed, and (2) $6,610 of accrued but unpaid interest. a) Prepare the closing entries for the temporary accounts at December 31. b) Prepare the reversing entries on January 1. c) Prepare the entries to record (1) collection of the service revenue on January 10, and (2) the $6,610 payment of interest due on January 15. d) Enter the adjusted trial balance data in the four accounts using T accounts, and post the entries from (a), (b) and (d).

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section21.1: Accruals

Problem 1OYO

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Accounts receivable		$9,610		Service revenue		$109,000
Interest expense		12,740		Interest payable		6,610

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