Question

45. Brian hired Tony’s Repair Service to overhaul his company’s plumbing system. The repair began on September 15 and Tony intends to complete it on October 15. Brian’s company agreed to pay Tony’s Repair $4,000 when the work is completed. As of September 30, the work was 50% complete. Provide the adjusting entry to accrue Brian’s repair expense at the end of September. 46. Continuing the previous problem, on October 15, Tony’s Repair finally completed the work, and Brian paid his bill in full. Provide the journal entry for Brian’s payment to Tony’s Repair (below).

Answer 1

45. The adjusting entry to accrue Brain's repair expense on 30th Sep:

Repair expense (Dr)                     $2000

Repair expense payable(Cr)         $2000

46. Journal entry for Brain's payment to Tony as on Oct 15:

Repair expense (Dr)                     $2000

Repair expense payable(Dr)         $2000

Cash (Cr)                                       $4000