For Each of the Following Two Separate Situations,present Both the April

question 206

Essay

For each of the following two separate situations,present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses or receipt of the accrued revenue.Assume the company does not prepare reversing entries.
a.Nicolas Company has 5 employees,who earn a total of $2,900 in salaries each working day.They are paid on Monday for the five-day workweek ending on the previous Friday.Assume that fiscal year ended April 30,is a Thursday and all employees worked each day and will be paid salaries for five full days on the following Monday.
b.Services of $3,000 have been performed for Clevenger Company through April 30.The client will pay the entire amount of the contract when services are completed on May 23.
c.Paid the employees' salaries on May 4.
d.Received payment from Clevenger Company for services that are now completed on May 23.

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Definitions:

Indirect Actions

Measures or activities that are not directly implemented but influence outcomes through intermediaries or other indirect means.

Currency Exchange

The act of converting one country's currency into another's, a key component in international trade and investment activities.

Domestic Currency

The currency that is legally in use within a country's borders, serving as the medium for exchange, a store of value, and a standard of account.

Exchange Rate

The value of one currency when being converted to another currency.