Answer and Explanation:
The Journal entries are shown below:-
1. Deferred Service Revenue A/c Dr, $4,800
To Revenue A/c $4,800
(Being Revenue recognized is recorded)
2. Advertisement Expense A/c Dr, $1,800 ($3,600 ÷ 40 × 20)
To Prepaid Advertisement A/c $1,800
(Being expense recognized is recorded)
3. Employees Salaries A/c Dr, $24,000
To Outstanding Employees Salaries A/c $24,000
(Being expense & liability is recorded)
4. Interest expense A/c Dr, $1,500 (($50,000 × 9%) ÷ 12 × 4
To Interest Liability A/c $1,500
(Being Interest expense and Liability is recorded)
