Question Details

Enter the adjusted trial balance data in T-accounts  



On December 31, 2011 the adjusted trial balance of the High Country Match Service shows the following selected data:
	Commissions Receivable, $7,000
	Commission Revenue, $70,000
	Salaries Expense, $10,500
	Salaries Payable, $2,500
	Insurance Expense, $4,800
	Income Tax Expense, $6,400
	Income Tax Payable, $2,400

Analysis indicates that adjusting entries were made for (a) $7,000 of commission revenue earned but not billed, (b) $2,500 of accrued but unpaid salaries, and (c) $2,400 of  income tax expense accrued but not paid.

Instructions
(a)	Prepare the closing entries at December 31, 2011.
(b)	Prepare the reversing entries on January 1, 2012.
(c)	Enter the adjusted trial balance data in T-accounts. Post the entries in (a) and (b) and rule and balance the accounts.
(d)	Prepare the entries to record (1) the collection of the accrued commission on January 8, (2) payment of the utility bill on January 10, and (3) payment of all the interest due ($3,000) on January 15.
(e)	Post the entries in (d) to the temporary accounts.
(f)	What is the interest expense for the month of January 2012?




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