ezto ACCT 201 Reveiw 200 points company retared an atoney fo

ezto ACCT 201 Reveiw 2.00 points company retared an atoney for afiat monthly tee of Sasoo Payment for Apri services was made by the company on May 12 b. A$600,000 note payable requies 98% annual nterest, or S4.500 to be paid at the 20th day of each month. The interest was last paid on Agril 20 and the need payment is due on May z0. As of April 30 $1,800 of interest expense has acorued e. Total weekly salaries expense for all employees is $13,000. This amount is paid at the end of the day on Friday of each five day worcweek. Anil 30 talls on Tuesday of this year, which means hat May 3. te enioyees had d days sine te last payday The feat payday The above three separale situations require adjusting journal entries to prepare financial statements as ot Apri 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses (Use 300 days a year Do not round Intermediate calioulations and round your final answers to the nearest dolilar amount) Journal entry worksheet On April 1, the company retained an atormey for a flat monthly fee of $2,500. Payment for April legal services was made by the company on May 12

Solution

a. Entry to record the attorney\'s retainer fee for the month of april. Date Account title Debit Credit April 30 Legal fees 2500 Legal fee payable 2500 Entry to record the payment of attorney\'s retainer fee for the month of april. Date Account title Debit Credit May 12 Legal fees payable 2500 cash 2500 b. Entry to record the interest expense for the month of april. Date Account title Debit Credit April 30 Interest expense 1600 Interest payable 1600 Entry to record the payment of interest expense for the month of april. Date Account title Debit Credit May 20 Interest payable 1600 cash 1600 c. Entry to record the wages expense for the last week of april. Date Account title Debit Credit April 30 Wages expense 5200 Wages payable 5200 Entry to record the payment of wages for the last week of april. Date Account title Debit Credit May 3 Wages payable 5200 cash 5200 Wages for 5 days 13000 Wages for two days (13000*2 / 5) 5200