Sir Win – Accounting Lectures
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----------------------------------------------------------------------------------------------------------------Adjusting Entries: Accrued Expenses
----------------------------------------------------------------------------------------------------------------The following information are taken from the records of Fherlyn
Laundry Shop for the period January 1 to December 31, 2020:
Utilities
Unpaid electric bill as December 31, 2020, 9,950.
Salaries
The 15-day wages of salaries bill of 18,500 owing is due to be on
January 8, 2021.
Taxes
In December 2020, a real property tax assessment for 16,000 on
land owned during 2020 was received from the city. The taxes,
which are unpaid and unrecorded, are already due but the
entity intends to pay them on February 2021.
Interest
The note payable of 240,000 is an 18% 240-day note issued on
November 1, 2020 for equipment bought.
Repairs
On December 31, 2020, completed repairs on one of the trucks
at a cost of 8,000; the amount is not yet recorded and by
agreement will be paid on January 2021