Adam Jameson is the new owner of GlassLeaf Computer Services. At the end of August 2020, his first month of ownership, Jameson is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August. 1. At August 31, Jameson owed his employees $2,079 in wages that will be paid on September 1. 2. At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $646. 3. On August 1, Jameson borrowed $27,600 from a local bank on a 15-year mortgage. The annual interest rate is 7%. 4. A telephone bill in the amount of $119 covering August charges is unpaid at August 31. Prepare the adjusting journal entries as of August 31, 2020, suggested by the information above.
Adam Jameson is the new owner of GlassLeaf Computer Services. At the end of August 2020, his first month of ownership, Jameson is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August. 1. At August 31, Jameson owed his employees $2,079 in wages that will be paid on September 1. 2. At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $646. 3. On August 1, Jameson borrowed $27,600 from a local bank on a 15-year mortgage. The annual interest rate is 7%. 4. A telephone bill in the amount of $119 covering August charges is unpaid at August 31. Prepare the adjusting journal entries as of August 31, 2020, suggested by the information above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Adam Jameson is the new owner of GlassLeaf Computer Services. At the end of August 2020, his first month of ownership, Jameson is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.
| 1. | At August 31, Jameson owed his employees $2,079 in wages that will be paid on September 1. | |
| 2. | At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $646. | |
| 3. | On August 1, Jameson borrowed $27,600 from a local bank on a 15-year mortgage. The annual interest rate is 7%. | |
| 4. | A telephone bill in the amount of $119 covering August charges is unpaid at August 31. |
Prepare the
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