A review of the ledger of Swifty Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries 1 Salaries and Wages Payable $0 There are eight employees Salaries and wages are paid every Friday for the current week Five employees receive $810 each per week, and three employees earn $600 each per week December 31 is a Tuesday Employees do not work weekends All employees worked the last 2 days of December 2 Unearned Rent Revenue $396,120 The company began subleasing office space in its new building on November 1 Each tenant is required to make a $5,620 security deposit that is not refundable until occupancy is terminated At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease Date Term (in months) Monthly Rent Number of Leases Nov 1 6 $6,670 5 Dec 1 6 $6,060 4 3 Prepaid Advertising $18,000 This balance consists of payments on two advertising contracts The contracts provide for monthly advertising in two trade magazines The terms of the contracts are as shown below Contract Date Amount Number of Magazine Issues A650 May 1 $8,400 12 B974 Oct 1 9,600 24 The first advertisement runs in the month in which the contract is signed 4 Notes Payable $56,200 This balance consists of a note for one year at an annual interest rate of 12 , dated June 1 Prepare the adjusting entries at December 31, 2017 (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter 0 for the amounts Round answers to 0 decimal places, e g 2,520 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 11, 2024

A review of the ledger of Swifty Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries. 1.

A review of the ledger of Swifty Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries.

1.		Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $810 each per week, and three employees earn $600 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.
2.		Unearned Rent Revenue $396,120. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,620 security deposit that is not refundable until occupancy is terminated. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.

Date	Term (in months)	Monthly Rent	Number of Leases
Nov. 1	6	$6,670	5
Dec. 1	6	$6,060	4

Prepaid Advertising $18,000. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below.

Contract	Date	Amount	Number of Magazine Issues
A650	May 1	$8,400	12
B974	Oct. 1	9,600	24

The first advertisement runs in the month in which the contract is signed.

Notes Payable $56,200. This balance consists of a note for one year at an annual interest rate of 12%, dated June 1.

Prepare the adjusting entries at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 2,520.)