Prepare the adjusting entries needed at July 31, 2011.
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Jose Contreras is the new accountant of Curveball Computer Services. At the end of July 2011, Jose is trying to prepare monthly financial statements. He has the following information for the month.
1. At July 31, Curveball owed employees $1,100 in salaries that the company will pay in August.
2. On July 1, Curveball borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 12%.
3. Service revenue unrecorded in July totaled $1,600.
Prepare the adjusting entries needed at July 31, 2011.
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