Adjusting Journal Entries?


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The following trial balance has been extracted from Timothy's general ledger at 31
December 2013:
Cash at bank 35,900
Trade receivables 65,510
Plant and equipment 115,673
Motor vehicles 90,110
Trade payable 70,110
Capital at 31 December 2013 174,000
Returns inwards 10,891
Freight inwards 22,569
Returns outwards 10,200
Freight outwards 24,056
Insurance 27,510
Salaries 105,040
Accumulated depreciation at 31 December
2013:

Plant and equipment 46,700
Motor vehicles 31,300
Rent 50,763
Depreciation 26,710
Miscellaneous expenses 13,568
Utilities 20,037
Interest expense 4,000
Purchases 312,510
Sales 594,567
Commission income 10,000
Inventory at 1 January 2013 80,430
Loans repayable 5 years later 80,000
Drawings 11,600

Shortly after closing the accounting books, you discovered the following additional
information:
1. Utilities of $6,600 for the month of December 2013 has not yet been paid and recorded.
2. Timothy has yet to receive and record a commission income of $4,000 for the last quarter
of 2013.
3. Annual interest rate of the long-term loan is 10%. Only half of the interest expense has
been paid during the year.

Can I Credit Accrued Expense for question 1 and 3. If not, please help me to explain why?
 
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kirby

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Yes you can. I would use Accrued Expense 1 and Accrued Interest Expense for 2 but you could just use Accrued Expense for both
 

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