Consider the following situations for a company: 1. On November 28, Year 1, the company receives a $4,050 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, Year 1, the company pays a local radio station $2,610 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,700 will be paid on January 7, Year 2. 4. On August 31, Year 1, the company borrows $67,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, Year 2. Required: Record the necessary adjusting entries for the company at December 31, Year 1. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

Consider the following situations for a company: 1. On November 28, Year 1, the company receives a $4,050 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, Year 1, the company pays a local radio station $2,610 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,700 will be paid on January 7, Year 2. 4. On August 31, Year 1, the company borrows $67,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, Year 2. Required: Record the necessary adjusting entries for the company at December 31, Year 1. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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