Additional Information:

Moode

Asational imbormaton

Records shoe that $$5\mathrm{.}260$ in sludio reverue had not yet been biled or recorded as of

December $31$

Studo suppies on hand at Oecember $31$ amount to $$8,280.$

On August $1,$ yeat $1.$ the studio purchased a six$-$month insurance pollcy $$5$ o $$1,800.$ The

enre sremum was intially detited to Uneopired Insurance.

The studis is locaned in a rented bulaing. On Novernber $1,$ year $1,$ the studo pard $$7,200$

rert in advance for Novernber, Decomber, and January. The ortre amount was debited to

Prepas studio Rent.

The usoful Ife of the studio's recording equipmert is estmaled to be five years $($or $60$

monm$8).$ The straight$-$ine mathod of depleciation is used.

On May $1,$ year $1,$ the studo borrowed $$19\mathrm{.}200$ by signing a $12-$month $9$ percent nole

payable to National Australa Bark. The entre $$19,200$ plus $12$ months' interest is due in

Millon April $30.$ year $2.$

Records show that $$4\mathrm{.}320$ of cash receipts originally recoeded as Uneamed Sudio

Reverue had beer carned as of December $31.$

a$.$ Salares tamed by recolding technicians that rerrain urpaid at December $31$ amourt to

$$648.$

The studig's $8$ccountant estimates that income laxes axperse for the onbre year ended

December $31,$ year $1,$ is $$231520.($NDole that $$21,480$ of this amount has areasty been

recorded$)$