Question

Cullumber Computer Services began operations in July 2020. At the end of the month, the company prepares monthly financial statements. It has the following information for the month.

1.		At July 31, the company owed employees $1,000 in salaries that the company will pay in August.
2.		On July 1, the company borrowed $23,600 from a local bank on a 10-year note. The annual interest rate is 12%.
3.		Service revenue unrecorded in July totaled $2,400.

No.	Date	Account Titles and Explanation	Debit	Credit
1.	July 31	enter an account title to record accrued salaries	enter a debit amount	enter a credit amount
		enter an account title to record accrued salaries	enter a debit amount	enter a credit amount
		(To record accrued salaries)
2.	July 31	enter an account title to record accrued interest	enter a debit amount	enter a credit amount
		enter an account title to record accrued interest	enter a debit amount	enter a credit amount
		(To record accrued interest)
3.	July 31	enter an account title to record revenue for service provided	enter a debit amount	enter a credit amount
		enter an account title to record revenue for service provided	enter a debit amount	enter a credit amount

Answer 1

1. Journal Entries -

Explanation -

1. Salaries Expenses incurred and accrued for the month of July 2020.

2. Interest Expenses on notes payable $23,600 for 1 Month incurred.

3. Service revenue earned and receivable.