Question

At year-end, salaries expense of $17,000 has been incurred by the company but is not yet paid to employees. Salaries payable

Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2
b. At its December 31 year-end, the company owes $325 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
c. At its December 31 year-end, the company holds a mortgage payable that has incurred $950 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

Answer 1

Following are the responses to the given points:

Step-by-step explanation:

For part A:

Payable Salary

for point 1 $0 $19,500

for point 2 $17,000 Cr $21,800

$41,300

for point 3 Accounts title Dr. Cr.

Salaries expense $17,000

Payable Salary $17,000

For part A: Payable Interest

for point 1 $0 $0

for point 2 $325 Cr. $325

$325

for point 3 Accounts title Dr. Cr.

Interest on Expense $325

Payable Interest $325

For part C: Payable Interest

for point 1 $0 $0

for point 2 $950 Cr. $950

$950

for point 3 Accounts title Dr. Cr.

Interest on Expense $950

Payable Interest $950