On December 31, the adjusted trial balance of Shihata Employment Agency shows the following selected data

On December 31, the adjusted trial balance of Shihata Employment Agency shows the following selected data.

Accounts Receivable	$24,500	Service Revenue	$92,500
Interest Expense	7,700	Interest Payable	2,200

Analysis shows that adjusting entries were made to (1) accrue $5,000 of service revenue and (2) accrue $2,200 interest expense.

Instructions

Prepare the closing entries for the temporary accounts shows above at December 31.
Prepare the reversing entries on January 1.
Post the entries in (a) and (b). Underline and balance the accounts. (Use T-Accounts)
Prepare the entries to record (1) the collection of the accrued revenue on January 10 and (2) the payment of all interest due ($3,000) on January 15.
Post the entries in (d) to the temporary accounts.

Solution

Shihata Employment Agency
Closing Journal Entries

Shihata Employment Agency
Reversing Journal Entries

Shihata Employment Agency
T-accounts

Shihata Employment Agency
Journal Entries

Shihata Employment Agency
T-accounts

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Instructions

Solution

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