1.

On April 1, Griffith Publishing Company received $26,280 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year?

• debit Unearned Fees, $2,190; credit Fees Earned, $2,190.

• debit Unearned Fees, $6,570; credit Fees Earned, $6,570.

• debit Unearned Fees, $26,280; credit Fees Earned, $26,280.

• debit Unearned Fees, $19,710; credit Fees Earned, $19,710.

• debit Unearned Fees, $8,760; credit Fees Earned, $8,760.

2.

Sanborn Company has 10 employees, who earn a total of $3,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:

• Debit Salaries Payable, $11,400; credit Salaries Expense, $11,400.

• Debit Salaries Expense, $19,000; credit Salaries Payable, $19,000.

• Debit Salaries Expense, $11,400; credit Cash, $11,400.

• Debit Salaries Expense, $11,400; credit Salaries Payable, $11,400.

• Debit Salaries Expense, $7,600; credit Salaries Payable, $7,600.