The bookkeeper for Sunland Company asks you to prepare the following 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 $370 is accrued.
(b) Services performed but unbilled totals $1,830
(c) Salaries of $900 earned by employees have not been recorded
No. Date Account Titles and Explanation Debit Credit
(a) Dec. 31
(b) Dec. 31
(c) Dec. 31

(a) Dec 31:

Dr Interest Expense 370

Cr Interest Payable 370

(b) Dec 31:

Dr Account Receivable 1,830

Cr Service Revenue 1,830

(c) Dec 31:

Dr Salaries & wages expense 900

Cr Salaries & wages payable 900

Explanation:

Preparation of Journal entries

(a) Based on the information given we were told that Interest on notes payable of the amount of $370 was accrued which means that the Journal entry will be:

Dec 31

Dr Interest Expense 370

Cr Interest Payable 370

(To record accrued interest on note payable)

(b) Based on the information given we were told that Services was performed but unbilled totals of the amount of $1,830 which means that the Journal entry will be :

Dec 31

Dr Account Receivable 1,830

Cr Service Revenue 1,830

(To record unbilled service revenue)

(c) Based on the information given we were told that Salaries of the amount of $900 earned by employees have not been recorded which means that the Journal entry will be :

Dec 31

Dr Salaries & wages expense 900

Cr Salaries & wages payable 900

(To record salaries earned but not recorded)

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