Answer:
Salaries expense 5,190
Salaries payable 5,190
unearned rent revenue 90940 debit
rent revenue 90940 credit
advertizing expense 6,800 debit
prepaid advertising 6,800 credit
interest expense 3,934 debit
interest payable 3,934 credit
Explanation:
<u>Salaries accrued</u>
5 employes $750 each = 3750
3 employees $480 each = 1440
Total = 5190
<u>Rent revenue</u>
$6,670 per month x 5 lease x 2 months (from Nov 1st to Dec 31st) =66700
$6,060 per month x 4 lease x 1 month = 24240
total 90940
<u>advertizing:</u>
8,400 / 12 months x 8 months expired = 5600
9,600 / 24 months x 3 months expired = 1200
total 6,800
interest on note payable:
principal x rate x time
56,200 x 12% x 7/12 = 3,934
