E3-8B (Adjusting Entries) Dement is the new owner of Fung Computer Services.

E3-8B (Adjusting Entries) Dement is the new owner of Fung Computer Services. At the end of August 2014, his first month of ownership, Dement is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.

1. At August 31, Dement owed his employees $2,280 in wages that will be paid on September 1.

2. At the end of the month he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $720.

3. On August 1, Dement borrowed $36,000 from a local bank on a 15-year mortgage. The annual interest rate is 6%.

4. A telephone bill in the amount of $140 covering August charges is unpaid at August 31.

Instructions

Prepare the adjusting journal entries as of August 31, 2014, suggested by the information above.