Answer:
a) Debit interest expense $370
Credit note payable account $370.
b) Debit Unbilled receivables $1,830
Credit Service revenue $1,830
c) Debit Salaries expense $900
Credit Accrued Salaries $900
Explanation:
For interest on notes payables to be accrued, the entries required would be debit interest expense $370 and credit note payable account $370.
For services that have been rendered but yet to be billed, revenue must be recognized as the condition for its recognition has been satisfied hence the entries required are debit unbilled receivables and credit revenue.
When an expense is incurred but yet to be settled in accrual accounting, the expense has to be recognized in the period in which it is incurred by debiting the expense account and crediting the accrued expense ( a liability) account with the amount incurred.
