Dodie Company completed its first year of operations on December 31. All of the year's entries have been recorded except for the following: At year-end, employees earned wages of $4,000, which will be paid on the next payroll date in January of next year. At year-end, the company had earned interest revenue of $1,500. The cash will be collected March 1 of the next year. Required: 2. Prepare the required adjusting entry for transactions (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

A. Dr Wages expense 4,000

Cr Wages payable 4,000

B. Dr Interest receivable 1,500

Cr Interest revenue 1,500

Explanation:

Preparation of Journal entries

A. Based on the information given we were told that the company employees earned wages of the amount of $4,000, which will be paid on in January of next year which means that the Journal entry will be:

Dr Wages expense 4,000

Cr Wages payable 4,000

B. Based on the information given we were told that the company had earned the amount of $1,500 as interest revenue which means that the Journal entry will be recorded as:

Dr Interest receivable 1,500

Cr Interest revenue 1,500

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