Bjorn is trying to prepare monthly financial statements

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(Adjusting Entries) Bjorn Borg is the new owner of Ace Computer Services. At the end of August 2005, his first month of ownership, Bjorn 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, Mr. Borg 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, Mr. Borg 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. Prepare the adjusting journal entries as of August 31, 2005, suggested by the information above. 

Reference no: EM131104312

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