ACC410 E3-8 - the mortgage was 15 years with an annual...

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William Bryant is the new owner of Ace Computer Services. At the end of August 2010, his first month of ownership, Bryant is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August. 1. At August 31, Bryant owed his employees wages that will be paid on September 1 in the amount of $2,900 2. At the end of the month he had not yet received the monthly utility bill. Based on past experience, he estimated the bill would be approximately: $600 3. On August 1, Bryant borrowed money from a local bank. The amount was: $60,000 The duration of
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Unformatted text preview: the mortgage was 15 years with an annual interest rate of: 8% 4. A telephone bill for August is unpaid as of August 31 in the amount of: $117 Instructions: Prepare the adjusting entries as of August 31, 2010, suggested by the information above. 1 Wages Expense 2,900 Wages Payable 2,900 To record wages payable at 08/31 2 Utilities Expense 600 Accounts Payable 600 To record utilities payable at 08/31 3 Interest Expense (60,000 * 8.00% * (1/12)) 400 Interest Payable 400 To record interest payable at 08/31 4 Telephone Expense 117 Accounts Payable 117 To record telephone expense / payable at 08/31 1 2...
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ACC410 E3-8 - the mortgage was 15 years with an annual...

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