Answer:
Dec 31, 2021
DR Deferred Revenue ...................................................$750
CR Service Revenue ...............................................................$750
Working
Service provided at end of November so only one month left in the year. Revenue earned is;
= 2,250/ 3 months
= $750
Dec 31, 2021
DR Advertising Expense ..................................................$750
CR Prepaid Adevertising............................................................$750
Working
Advertising is for 3 months and only one month has elapsed;
= 2,250/ 3 months
= $750
Dec 31, 2021
DR Salaries Expense ............................................................$6,500
CR Salaries Payable...........................................................................$6,500
Dec 31, 2021
DR Interest Expense .............................................................. $1,650
CR Interest Payable...............................................................................$1,650
Working
9% is payable on the note for the year.
This figure will be apportioned monthly and since 4 months were left when it was signed, the interest will be for 4 months
= 55,000 * 9% * 4/12 months
= $1,650
