Assuming you are asked to enter the journal Entries:
A) The company records the accrued legal expense on April 30:
Debit: Legal Expense $3500
Credit: Legal Expense Payable ($3500)
On May 12, the company has settled its payable by paying the bill:
Debit: Legal Expense Payable: $3500
Credit: Cash $(3500)
B) The payment on April 20th is a increasing (debit) of interest expense and a decreasing (credit) of cash.
Debit: Interest Expense: 9,000
Credit: Cash (9,000)
On April 30, we recognize the interest accrued as of that date, by increasing interest expense and interest payable
Debit: Interest Expense: $3,000
Credit: Interest Payable: ($3,000)
C) If we are preparing a month-end statement, then we must recognize the accrued salary expense and related payable up until the end of April (Tuesday, April 30). We have accrued 2/5 of the 10,000 weekly salary payable. This amount is 4,000.
Entry on April 30:
Debit: Salaries and Wages Expense: $4,000
Credit: Salaries and Wages Payable: ($4,000)
Entry on May 3rd (to record the rest of the week’s salary expense and the payment of salaries, and also the settlement of the salaries payable recorded on April 30. Note that we have already recognized the other $4,000 of the salaries expense on April 30)
Debit: Salaries and Wages Expense: $6,000
Debit: Salaries and Wages Payable: $4,000
Credit: Cash ($10,000)
