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
