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Category > Accounting Posted 25 Jul 2017 My Price 5.00

Ace Computer Services

E3-8 (Adjusting Entries)William Bryant is the new owner of Ace Computer Services. At the end of August 2012, 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 $2,900 in salaries and wages that will be paid on September

1.

2.At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $600.

3.On August 1, Bryant borrowed $60,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%.

4.A telephone bill in the amount of $117 covering August charges is unpaid at August 31.

InstructionsPrepare the adjusting journal entries as of August 31, 2012, suggested by the information above.

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Maurice Tutor
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Status NEW Posted 25 Jul 2017 01:07 PM My Price 5.00

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