Reference no: EM132405248

Question

Below are the account balances (all normal) for McDonald's as of December, 2015 after adjusting journal entries but before closing entries. The accounts are listed in alphabetical order. All amounts are in millions of U.S. dollars. Assume no new investment by stockholders during the fiscal year 2018.

Payroll and employee benefits expense 4,400.00

Interest expense 638.30

Q: 1) Provide the adjusting entry that McDonalds' would complete to record the interest that has accrued during fiscal 2015, but has not yet been paid. (Assume McDonald's accrues interest once a year while adjusting its December 31 trial balance and assume that the unadjusted balance for accrued interest was $0)

Q: 2) Provide the adjusting entry that McDonald's would complete to record Accrued Payroll (i.e. wages payable) at the end of fiscal 2015. (Assume McDonald's accrues wages expenses once a year while adjusting its December 31 trial balance and assume that the unadjusted balance for the accrued wages account was $0)