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Title: Aaa

Essay Details:

Subject: Technology
Author: Rebecca S
Date: April 18, 2013
Level: University
Grade: B
Length: 3 / 617

Essay text:

GuCo had 19X5 sales of $500,000, but paid only $21,000 in commissions. How much does GuCo accrue in commissions on December 31? Mastering Adjusting Entries 20 SOLUTION 1: To compute: $500,000 sales for 19X5 x 5% = $25,000 commissions payable in 19X5. $25,000 payable – $21,000 actually paid = $4,000 accrued commissions. The adjusting journal entry is: Commissions Expense 4,000 Commissions Payable 4,000 To accrue 19X5 commissions PROBLEM 2: On December 31, SuCo receives a $740 phone bill that it will pay the following month. What entry does SuCo record on December 31? SOLUTION 2: On December 31, SuCo records the following adjusting entry: Telephone Expense 740 Telephone Payable 740 To accrue telephone expense PROBLEM 3: RaCo pays employees weekly on Friday...

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