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Calvin and Hobbes are the new owners of Micro Computer Services. At the end of August 2010, their first month of ownership, Calvin and Hobbes are trying to prepare monthly financial statements. They have the following information for the month.
1. At August 31, Calvin and Hobbes owed employees $800 in salaries that the company will pay on September 1.2. On August 1, Calvin and Hobbes borrowed $30,000 from a local bank on a 15-year note.The annual interest rate is 10%.3. Service revenue unrecorded in August totaled $1,100. Prepare the adjusting entries needed at August 31, 2010.
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