Pioneer signed a three-month, 12%, note payable in the amount of $50,000 on Octo
ID: 2343342 • Letter: P
Question
Pioneer signed a three-month, 12%, note payable in the amount of $50,000 on October 1. Prepare the adjusting entry on Oct. 31 to record the accrual of interest. Suppose Pioneer makes quarterly financial statements, and October 31 falls on a fiscal quarter-end. What journal entry does Pioneer make on December 31? Pioneer Advertising pays its employees every Friday for total salaries and wages of $10,000 for the five-day work week, or $2,000 per day. October 31, 2017 falls on a Tuesday. Prepare the adjusting entry on Oct. 31 to record accrual for salaries.Explanation / Answer
date
explanation
debit
credit
31-Oct
interest expense
500
interest payable
500
31-Dec
interest expense
1000
interest payable
1000
31-Dec
salaries and wages expense
4000
salaries and wages payable
4000
date
explanation
debit
credit
31-Oct
interest expense
500
interest payable
500
31-Dec
interest expense
1000
interest payable
1000
31-Dec
salaries and wages expense
4000
salaries and wages payable
4000