Question

a. Received a $600 utility bill for electricity usage in December to be paid in January 2014. b. Owed wages to 10 employees who worked three days at $100 each per day at the end of December. The company will pay employees at the end of the first week of January 2014. c. On December 1, 2013. loaned money to an employee who agreed to repay the loan in one year along with $1,200 for one full year of interest, No interest has been recorded yet. Journal Entry Worksheet Record the receipt of a $600 utility bill for electricity usage In December to be paid In January 2014.

Answer 1

Solution and Explanation:

The following journal entries will be passed at the end of December month:

Number           Account details and explanation         debit          credit

1.                    Utility expense                                       600

                           Accounts payable                                                600

      (To record the accrued utility exxpense)

2.                Salaries and wages expense                  3000

                    (10 * 3 days * $100)

                  Salaries and wages payable                                        3000

        (To record salaries and wages expense )

3.            Interest  receivable ( $1200 divide by 12)      100

                            Interest revenue                                                    100

      ( To record the interest revenue)