The December 31 financial statements of Jagger Company included the effects of the following transactions:

a. Wages of $6,800 were recorded. These wages will be paid on January 2.
b. Interest expense of $750 that will be paid on February 1 was recorded.
c. Interest revenue of $300 that will be paid on March 1 was recorded.

Required: Prepare the reversing entries for these transactions.

What will be an ideal response?

Answer:
Jan 1
Wages Payable
6800

Wages Expense

6800

Jan 1
Interest Payable
750

Interest Expense

750

Jan 1
Interest Revenue
300

Interest Receivable

300

Business

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