Question & Answer: Metlock, Inc. is the new owner of Metlock's Computer Services. At the end of July 2017, her firs…..

Metlock, Inc. is the new owner of Metlocks Computer Services. At the end of July 2017, her frst month of ownership, Metlock is trying to prepare monthly financial statements. She has the following information for the month 1. 2, 3. At July 31, Metlock owed employees $3,300 in salaries that the company will pay in August. on July 1, Metlock borrowed $19,200 from a local bank on a 11-year note. The annual interest rate is 10% Service revenue unrecorded in July totaled $1,600. Prepare the adjusting entries needed at July 31, 2017. (If no entry is required, select No Entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit i. 2. 3. SHOW LIST OF ACCOUNTS

Metlock, Inc. is the new owner of Metlock’s Computer Services. At the end of July 2017, her first month of ownership, Metlock is trying to prepare monthly financial statements. She has the following information for the month. 1. At July 31, Metlock owed employees $3,300 in salaries that the company will pay in August. 2. On July 1, Metlock borrowed $19,200 from a local bank on a 11-year note. The annual interest rate is 10%. 3. Service revenue unrecorded in July totaled $1,600. Prepare the adjusting entries needed at July 31, 2017. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Expert Answer

 

Adjusting entries needed at July 31,2017
No. Account Tites and Explanation Debit Credit
1 Salaries Expenses $3,300
Salaries Payable $3,300
(recording of salaries owed for the month of July)
2 Interest Expense $160
Interest on Note Payable $160
(recording of interest on note payable for the month of July)
3 Accounts Receivable $1,600
Service Revenue $1,600
(recording of unrecorded revenue for the month of July)
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