Acc421 Intermediate Accounting: P3-5 The accounts listed below appeared in the December 31 trial

Acc421 Intermediate Accounting

The accounts listed below appeared in the December 31 trial balance of the Jane Alexander Theater.
Equipment DR 192,000
Accumulated Depreciation - Equipment CR 60,000
Notes Payable CR 90,000
Admissions Revenue CR 380,000
Advertising Expense DR 13,680
Salaries Expense DR 57,600
Interest Expense DR 1,400

(a)From the account balance listed above and the information given below, prepare the annual adjusting entries necessary on December 31 (omit explanations).
(1) The equipment has an estimated life of 16 years and a salvage value of $40,000 at the end of that time (use straight line method).
(2) The note payable is a 90-day note given to the bank October 20 and bearing interest at 10%.
(3) In December 2,000 coupon admission books were sold at $25 each. They could be used for admission any time after January 1.
(4) Advertising expense paid in advance and included in Advertising Expense $1,100.
(5) Salaries accrued but unpaid $4,700
(b) What amounts should be shown for each of the following on the income statement for the year?
(1) Interest expense
(2) Admission Revenue
(3) Advertising Expense
(4) Salaries Expense
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