Problem 3-5 The accounts listed below appeared in the December 31 trial balance

Question

Problem 3-5 The accounts listed below appeared in the December 31 trial balance of the Metlock Theater Debit Credit Equipment Accurmulated Depreciation-Equipment Notes Payable Admissions Revenue Advertising Expense Salaries and Wages Expense Interest Expense 5204,416 $62,760 126,000 383.300 14,190 57,930 1,960 From the account balances listed above and the information given below, prepare the annual adjusting entries necessary on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,250.) (1) The equipment has an estimated life of 16 years and a salage value of $22,784 at the end of that time. (Use straight-line method.) (2) The note payable is a 90-day note given to the bank on October 20 and bearing interest at 8%. (Use 360 days for denominator.) (3) In December, 1,950 coupon admission books were sold at $30 each and recorded as Admissions Revenue. They could be used for admission any time after January 1 (4) Advertising expense paid in advance and included in Advertising Expense $1,045. (5) Salaries and wages accrued but unpaid 54,596

Explanation / Answer

Adjusting entry :

Amount shown in income statement

Transaction Account and explanation debit credit 1 Depreciation expense 11352 Accumlated depreciation-Equipment 11352 (To record depreciation expense) 2 Interest expense (126000*8%*72/360) 2016 Interest payable 2016 (To record interest) 3 Admission revenue (1950*30) 58500 Unearned revenue 58500 (To record unearned revenue) 4 Prepaid advertising 1045 Advertising expense 1045 (To record advertising expense) 5 Salary and wages expense 4596 Salary and wages payable 4596 (To record accured salary and wages)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.