Book 2 - Chapter 8

LG 8-2, continued

Date	Account Titles and Explanation	Post. Ref.	Debit	Credit
30	Rent Expense		4,000
	Rent Payable			4,000
	To accrue rent owing but unpaid

30	Wages Expense		3,600
	Wages Payable			3,600
	To accrue four days of wages to Sept. 30 at $900 per day

Note on last item: First, you calculate the rate per day: $4,500/5 = $900 per day. Second, you
count backwards from Oct. 4 to find what day of the week September 30 was on! If October 4 is
a Monday, then September 30 must have been a Thursday. Therefore, at the end of business on
September 30, there must have been four days of accrued wages: Monday, Tuesday, Wednesday,
and Thursday: 4 × $900/day = $3,600.

LG 8-3.

Date	Account	Post. Ref.	Debit	Credit
2008
December	(a)
31	Accounts Receivable		7,600
	Financial Service Revenue			7,600
	(b)
31	Internet Service Expense		4,500
	Accounts Payable			4,500
	(c)
31	Wages Expense		12,600
	Wages Payable			12,600
	(d)
31	Computer Lease Expense		1,250
	Accounts Payable			1,250
	(e)
31	Interest Receivable		180
	Interest Revenue			180

Learning Goal 8, continued

SOLUTIONS

Learning Goal 8: Prepare Adjusting Entries for Accrued Expenses

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