Several transactions for Trolley, Inc. are presented below. The company adjusts its books only at year-end. 1. On August 1, the company rented some land from another company for $2,660 for a three- year time period. Trolley charged an expense account on August 1. 2. On February 1, Trolley paid $8,000 for a four-year technical service contract. Trolley will receive services evenly throughout the four-year period. The company debited the asset account, Prepaid Service Contract, on February 1. 3. On May 1, Trolley loaned $3,400 to another company on a 12%, one-year note. 4. The weekly (five-day) payroll of Trolley amounts to $2,500. All employees are paid at the close of business each Friday. December 31 falls on a Thursday. Required: Prepare adjusting entries for December 31. (Round to the nearest whole dollar.)
Several transactions for Trolley, Inc. are presented below. The company adjusts its books
only at year-end.
1. On August 1, the company rented some land from another company for $2,660 for a
three- year time period. Trolley charged an expense account on August 1.
2. On February 1, Trolley paid $8,000 for a four-year technical service contract. Trolley will
receive services evenly throughout the four-year period. The company debited the asset
account, Prepaid Service Contract, on February 1.
3. On May 1, Trolley loaned $3,400 to another company on a 12%, one-year note.
4. The weekly (five-day) payroll of Trolley amounts to $2,500. All employees are paid at
the close of business each Friday. December 31 falls on a Thursday.
Required: Prepare
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