Question

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

Answer 1

Answer:

1. Dr Depreciation expense $10,566

Cr Accumulated depreciation-equipment $10,566

2. Dr Interest expense $1,440

Cr Interest payable $1,440

3. Dr Admission revenue $57,300

Cr Deferred revenue $57,300

4. Dr Prepaid advertising $1,025

Cr Advertising expense $1,025

5. Dr Salaries and wages expense $4,408

Cr Salaries and wages payable $4,408

Explanation:

Preparation of the annual adjusting entries necessary on December 31.

1. Dr Depreciation expense $10,566

(192,000-22,944/16)

Cr Accumulated depreciation-equipment $10,566

2. Dr Interest expense $1,440

(90,000*8%*72/360)

Cr Interest payable $1,440

3. Dr Admission revenue $57,300

($1,910*30)

Cr Deferred revenue $57,300

4. Dr Prepaid advertising $1,025

Cr Advertising expense $1,025

5. Dr Salaries and wages expense $4,408

Cr Salaries and wages payable $4,408