1. Depreciation 2. Airport Rent Expense 3. Insurance Expense 4. Passenger Revenue Eamed balance dated August 31, 2002. Additional information is provided for use in preparing the con The Campus Theater adjusts its accounts every month Below is the company's unadjusted trial pany's adjusting entries for the month of August. (Bear in mind that adjusting entries have al ready been made for the first seven months of 2002, but not for August.) PROBLEM 4.4 Preparing Adjusting Entries from a Trial Balance LO 1-7.9 E 160 CAMPUS THEATER Unadjusted Trial Balance August 31, 2002 20.000 3100 120.000 100 000 35.000 Prepaid time Land Bulong Accumulo deprecation: Fortures and equipment Accumulated to fores and open Notes payable Accounts payable Uneamed admissions revenue (YMCA) Income to pay Capital stock Retained eige Dividends Admissions Concessions revenge Salaries expense Fimrontal expense Us expense Depreciation expense:bolding Depreciation expense fodures and equipment Interest expense Income taxes expense 12.000 10 000 4400 1000 4740 10.000 46 010 15.000 305.200 5550 94.560 9.500 4900 4200 10.500 40.000 5522 300 622 300 Other Data 1. Film rental expense for the month is $15,200. However, the film rental expense for several months has been paid in advance. 2. The building is being depreciated over a period of 20 years (240 months). 3. The fixtures and equipment are being depreciated over a period of 5 years (60 months) 4. On the first of each month, the theater pays the interest that accrued in the prior month its note payable. At August 31, accrued interest payable on this note amounts to $1.500. 5. The theater allows the local YMCA to bring children attending summer camp to the movie on any weekday afternoon for a fixed fee of $500 per month. On June 28, the YMCA made a $1,500 advance payment covering the months of July, August, and September 6. The theater receives a percentage of the revenue eamed by Tastie Corporation, the conces- sionaire operating the snack bar. For snack bar sales in August, Tastic owes Campus Theater $2.250, payable on September 10. No entry has yet been made to record this revenue. (Credit Concessions Revenue.) 7. Salaries earned by employees, but not recorded or paid as of August 31, amount to S1,700 No entry has yet been made to record this liability and expense. 8. Income taxes expense for August is estimated at $4,200. This amount will be paid in the September 15 installment payment 9. Utilities expense is recorded as monthly bills are received. No adjusting entries for utilities Expense are made at month-end, structions For each of the numbered paragraphs, prepare the necessary adjusting entry (including an explanation)
