Question

The accounts listed below appeared in the December 31 trial balance of the Savard Theater. Debit Credit Equipment $192,000 Accumulated Depreciation - Equipment $60,000 Notes Payable $90,000 Admissions Revenue $380,000 Advertising Expense $13,680 Salaries Expense $57,600 Interest Expense $1,400 a. From the account balances listed above and the information given below, prepare the annual adjusting entries necessary on December 31. 1. The equipment has an estimated life of 16 years and a salvage value of $22,944 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, 1,910 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 $1,025. 5. Salaries and wages accrued but unpaid $4,408.

          The accounts listed below appeared in the December 31 trial balance of the Savard Theater.

Debit                     Credit
Equipment                                                               $192,000
Accumulated Depreciation - Equipment                                              $60,000
Notes Payable                                                                                          $90,000
Admissions Revenue                                                                               $380,000
Advertising Expense                                             $13,680
Salaries Expense                                                    $57,600
Interest Expense                                                   $1,400

a. From the account balances listed above and the information given below, prepare the annual adjusting entries necessary on December 31.

1. The equipment has an estimated life of 16 years and a salvage value of $22,944 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, 1,910 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 $1,025. 
5. Salaries and wages accrued but unpaid $4,408.

Added by Connie J.

Question

Please give Ace some feedback