Question

1.On Friday, April 3, 2020 Adriana will pay salaries of $5,000 for two weeks for days worked up to and including April 3, 2020. Employees do not work weekends.

Financial Statements are prepared on a monthly basis.

At March 31, 2020 how many days of pay need to be accrued?

2.On January 1, 2020, Adriana took out a bank loan for $60,000 with an interest rate of 5%. Interest is paid on the first day of each following month.  

Financial Statements are prepared on a monthly basis.

What is the accrued interest expense at March 31, 2020?

3.During the month, Adriana purchased supplies for her cooking classes such as meats and cheese for $5,000. At the end of the month, March 31, 2020, a physical count shows that $1,000 of supplies was left.

Financial Statements are prepared on a monthly basis. At March 31, 2020 what amount of Supplies Expense should be recognized?

4.On Friday, April 3, 2020 Adriana will pay salaries of $5,000 for two weeks, for days worked up to and including April 3, 2020. Employees do not work weekends.

Financial Statements are prepared on a monthly basis.

At March 31, 2020 what is the accrued wages?

5.Students paid $30,000 in advance for cooking classes. At the end of the month, March 31, 2020, Adriana finished teaching $10,000 worth of cooking classes.

Financial Statements are prepared on a monthly basis. What amount of revenue would be recognized at March 31, 2020?

Answer 1