COMMERCE 1AA3 Lecture Notes - Lecture 8: Accrual, 2 On, Interest Rate
23 Sep 2016
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On june 1, 2013, chocolate inc. , receives in newspaper subscriptions for the next year, effective august 1, 2013. Prepare the adjusting entry as of december 31, 20113. Accrued expenses - unrecorded expenses, that have been incurred but not paid or record. If chocolate inc s 5-day weekly payroll was , and the year ended on a wednesday. Chocolate inc pays and records wages each friday. Prepare the adjusting entry as of fiscal year end. Salary - person is not paid more if worked under time or overtime. On september 1,2013, chocolateinc. put 000 in a saving account for one year. The interest rate is 12% receivable every six months, on march 1 and september 1. 2 (10 000 * 12%)* 4 months/ 12 months = 400. Once you receive the interest, you do not earn interest on the new interest.
