Question

The bookkeeper for Sandhill Co. asks you to prepare the accrual adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

(a) Interest on notes payable of $290 is accrued.

(b) Services performed but unbilled totals $1,910.

(c) Salaries of $900 earned by employees have not been recorded.

Answer 1

(a) Interest on notes payable of $290 is accrued.

Dr Interest expense 290

Cr Interest payable 290

(b) Services performed but unbilled totals $1,910.

Dr Unbilled revenue 1,910

Cr Service revenue 1,910

(c) Salaries of $900 earned by employees have not been recorded.

Dr Salaries expense 900

Cr Salaries payable 900