Prepare monthly financial statements

Reference no: EM13153154

Andy Roddick is the new owner of Ace Computer Services. At the end of August 2007, his first month of ownership, Roddick 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, Roddick owed his employees $1,900 in 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, Roddick borrowed $30,000 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.

Instructions

Prepare the adjusting journal entries as of August 31, 2007, suggested by the information above.

All of the charges occurred in 2007

Reference no: EM13153154

Questions Cloud

Current liabilities related to company operating cycle : The assets and earning power are likewise important to a banker considering a loan. How are current liabilities related by definition to current assets? How are current liabilities related to a company"s operating cycle?

Which of the following is a property of niacin in nutrition : Which of the following is a property of niacin in nutrition?

What happens to excess fat soluble vitamins : What happens to excess fat soluble vitamins?

Which partner has the comparative advantage in cake baking : Which partner has the comparative advantage in cake baking? Explain. Plot their combined PPC, including the number of cakes and pies at each of the three corners.

Prepare monthly financial statements : Andy Roddick is the new owner of Ace Computer Services. At the end of August 2007, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business ..

Explain what is the mass of platinum required to solidify : What is the mass of platinum required to solidify all the gold? What is the change in entropy of the system? Cp(Pt, s) = 25.86J/mol*K ?H?fus(Au, s l) = 12550J/mol

Management related topic : I am writing a research paper for a management class and need help coming up with a related topic. The topic has be to about a management related topic that I am intresested in and focus on this topic within a particular industry

What volume of cl2 gas is required : What volume of Cl2 gas, measured at 682 torr and 40 degrees celcius, is required to form 26 g of NaCl ?

Which of following describes the basic function of a coenzym : Which of the following describes the basic function of a coenzyme?

User Account

All Pages