Question: Jean Karns is the new owner of Jean's Computer Services. At the end of July 2017, her first month of ownership, Jean is trying to prepare monthly fi nancial statements. She has the following information for the month.
1. At July 31, Jean owed employees $1,100 in salaries that the company will pay in August.
2. On July 1, Jean borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 9%. 3. Service revenue unrecorded in July totaled $1,600. Prepare the adjusting entries needed at July 31, 2017.