Envirocan Resources prepares adjusting entries monthly. In reviewing the accounts on March 31, Envirocan Resources...

80.2K

Verified Solution

Question

Accounting

image
Envirocan Resources prepares adjusting entries monthly. In reviewing the accounts on March 31, Envirocan Resources discovered the following: a. Interest of $1,190 had accrued on the note payable as at March 31. It is to be paid on April 2. b. Unpaid and unrecorded salarles at March 31 totalled $32,450. The $32,450 plus salaries of $21,500 for the first four days of April were paid on April 4 c. The March telephone bill for $400 is unpaid and unrecorded at March 31. It is to be paid on April 15. d. Envirocan normally pays rent in three-month installments. At March 31, rent of $3,800 per month had not been paid for February March, or April. Rent of $3,800 was correctly accrued at the end of February. The balance owing plus rent for May, June and July was paid on April 26 e. Envirocan pays commissions to the technicians at the rate of 3% of services performed. During March, total services performed were $370,000. Commissions are unrecorded and unpaid at March 31. Commissions are paid on the 15th of the following month. Required: Using the information provided above, prepare the monthly adjusting journal entries at March 31 along with the appropriate subsequent cash entries. Adjusting journal entries View transaction lit Journal entry worksheet 2 5 > Record the accrued interest. Net bure

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students