Question

1. On April 1, the company hired an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12.
2. As of April 30, $1,706 of interest expense has accrued on a note payable. The full interest payment of $5,118 on the note is due on May 20.
3. Total weekly salaries expense for all employees is $9,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3.

The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record payment of the accrued expenses. (Do not round intermediate calculations.)

Answer 1

Date	General Journal	Debit	Credit
April 30	Legal expense	$3,500
	Legal expense payable		$3,500
	( To record legal expenses)
May 12	Legal expense payable	$3,500
	Cash		$3,500
	( To record payment for legal expenses)

Date	General Journal	Debit	Credit
April 30	Interest expense	$1,706
	Interest payable		$1,706
	( To record interest expense)
May 20	Interest expense	$3,412
	Interest payable	$1,706
	Cash		$5,118
	( To record payment of interest expense)

Date	General Journal	Debit	Credit
April 30	Salary expense	$3,600
	Salary payable		$3,600
	( To record salary expense)
May 3	Salary expense	$5,400
	Salary payable	$3,600
	Cash		$9,000
	( To record payment of salary expense)