4. You have been hired by C\&G, Inc., a small engineering and drafting firm, to help prepare a set of financial statements for the bank for the year ending October 31 . You have reviewed all the transactions for the year and find the following information that has not been recorded in the company's books. Using the BSE template below, prepare the adjusting entries required on October 31 for each of the following independent situations. (10 points) a. The firm paid $81 cash on October 15 for a series of radio commercials to run during October and November. The $81 payment was recorded in the Prepaid advertising account. One-third of the commercials have aired by October 31st. b. Starting October 1 , all maintenance work on C\&G's computer and printing equipment is handled by PC Guru under an agreement whereby C\&G pays a fixed monthly charge of $32. C\&G paid six months' service charge of \$192 cash in advance on October 1, and increased its Prepaid expenses account by $192. c. Weekly salaries for a five-day week total $25, payable on Fridays. Last Friday's payroll has been paid recognized in the books. October 31 of the current year is a Tuesday. d. C\&G has $160 of notes payable outstanding at October 31(already recorded on the books.) Interest of $16 has accrued on these notes by October 31 , and will be paid when the notes mature in 2020. e. C\&G received a deposit from a client for a job that will begin in December. The $80 deposit was recorded as Sales. Prpd. Adv.: Prepaid Advertising Other Prpd. Exp's.: Other Prepaid Expenses CS: Common Stock 4. You have been hired by C\&G, Inc., a small engineering and drafting firm, to help prepare a set of financial statements for the bank for the year ending October 31 . You have reviewed all the transactions for the year and find the following information that has not been recorded in the company's books. Using the BSE template below, prepare the adjusting entries required on October 31 for each of the following independent situations. (10 points) a. The firm paid $81 cash on October 15 for a series of radio commercials to run during October and November. The $81 payment was recorded in the Prepaid advertising account. One-third of the commercials have aired by October 31st. b. Starting October 1 , all maintenance work on C\&G's computer and printing equipment is handled by PC Guru under an agreement whereby C\&G pays a fixed monthly charge of $32. C\&G paid six months' service charge of \$192 cash in advance on October 1, and increased its Prepaid expenses account by $192. c. Weekly salaries for a five-day week total $25, payable on Fridays. Last Friday's payroll has been paid recognized in the books. October 31 of the current year is a Tuesday. d. C\&G has $160 of notes payable outstanding at October 31(already recorded on the books.) Interest of $16 has accrued on these notes by October 31 , and will be paid when the notes mature in 2020. e. C\&G received a deposit from a client for a job that will begin in December. The $80 deposit was recorded as Sales. Prpd. Adv.: Prepaid Advertising Other Prpd. Exp's.: Other Prepaid Expenses CS: Common Stock
