Question

Record adjusting journal entries for each of the following for year ended December 31.

Assume no other adjusting entries are made during the year.

Record adjusting journal entries for each of the following for year ended December 31.

Assume no other adjusting entries are made during the year.

Accounts Receivable. At year-end, the Krug Company has completed services of $26,000 for a client, but the client has not yet been billed for those services.

Interest Receivable. At year-end, the company has earned, but not yet recorded, $670 of interest earned from its investments in government bonds.

Accounts Receivable. A painting company collects fees when jobs are complete. The work for one customer, whose job was bid at $1,860, has been completed, but the customer has not yet been billed.

a. At year-end, the Krug Company has completed services of $26,000 for a client, but the client has not yet been billed for those services.

b. At year-end, the company has earned, but not yet recorded, $670 of interest earned from its investments in government bonds.

c. A painting company collects fees when jobs are complete. The work for one customer, whose job was bid at $1,860, has been completed, but the customer has not yet been billed.

Answer 1

Adjustment Entries	Debit $	Credit $
Accounts Receivable	26000
To service revenues		26000
Being Revenue from service rendered to client but not received recorded
Interest receivable	670
To   Interest revenue		670
Being interest earned from its investments in government bonds but not recorded
Accounts Receivable	1860
To service revenues		1860
Being Revenue from service rendered to client but not received recorded
Total	28530	28530