Ask Question
BusinessBusiness
24 May, 17:32

On april 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for april legal services was made by the company on may 12. Prepare the required adjusting entry, if any

+4
Answers (1)
  1. 24 May, 17:41
    0
    On April 30,

    Dr Attorney Fee Expense $3500

    Cr Attorney Fee Payables $3500

    On May 12,

    Dr Attorney Fee Payables $3500

    Cr Cash Account $3500

    Explanation:

    Okay here the attorney fee is the legal fee expense that was accrued in April and must accounted for as accrued expense. The accounting entry would be increase in payables (Credit) and expense (Debit) as well.

    Dr Attorney Fee Expense $3500

    Cr Attorney Fee Payables $3500

    Now on May 12, the company paid the expense which means that the legal fee payable was reduced to zero (Reduction in liabilities is always debited) and the cash is also reduced by $3500 (Asset reduction is always credited).

    Dr Attorney Fee Payables $3500

    Cr Cash Account $3500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On april 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for april legal services was made by the company on ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Describe an advertisement you've seen that uses a desire-based marketing message. what desire does this ad appeal to?
Answers (1)
E-mails that rouse strong emotions like anger should always be responded to immediately before the emotion wears off. true or false
Answers (1)
When a bankrupt company's only listed address and phone number is a post office box and an answering service, we may see this as a flag of what type of fraud?
Answers (1)
Write Pro has accepted a special project creating marketing materials for an event next weekend at the local expo center. In order to meet the deadline, they will need to produce writing at double the usual pace.
Answers (1)
Refer to table 17-14. which outcome is the nash equilibrium in this game?
Answers (1)
New Questions in Business
2. Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $40. Suppose that the world price of meekers is $39.
Answers (1)
An economic system: A. requires a grouping of private markets linked to one another. B. is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem. C.
Answers (1)
Grading at a site refers to A) evaluating the existing subsurface conditions of a site. B) evaluating the groundwater conditions at a site. C) compacting the soil to required density. D) None of these.
Answers (1)
A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:A.
Answers (1)
Which investment has the highest liquidity and can be converted into cash easily? A - bonds B - mutual funds C - stocks D - certificates of deposit
Answers (2)
Home » Business » On april 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for april legal services was made by the company on may 12. Prepare the required adjusting entry, if any
Sign Up Forgot Password?