Adjusting Entries The following information relates to December 31 adjustments for Best Print, a printing company. The firm's fiscal year ends on December 31. 1. Weekly salaries for a five-day week total $3,000, payable on Fridays. December 31 of the current year is a Tuesday. 2. Best Print has $25,000 of notes payable outstanding at December 31. Interest of $275 has accrued on these notes by December 31, but will not be paid until the notes mature next year. 3. During December, Best Print provided $1,000 of printing services to clients who will be billed on January 2. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. 4. Starting December 1, all maintenance work on Best Print's equipment is handled by Prompt Repair Company under an agreement whereby Best Print pays a fixed monthly charge of $125. Best Print paid six months' service charge in advance on December 1, debiting Prepaid Maintenance for $750. 5. The firm paid $900 on December 15 for a series of radio commercials to run during December and January. One-third of the commercials have aired by December 31. The $900 payment was debited to Prepaid Advertising. 6. Starting December 16, Best Print rented 400 square feet of storage space from a neighboring business. The monthly rent of $0.90 per square foot is due in advance on the first of each month. Nothing was paid in December, however, because the neighbor agreed to add the rent for 50% of December to the January 1 payment. 7. Best Print invested $7,500 in securities on December 1 and earned interest of $62 on these securities by December 31. No interest will be received until January. 8. The annual depreciation on the firm's equipment is $2,600. No depreciation has been recorded during the year. Required Prepare the required December 31 adjusting entries in the general journal. General Journal Date Description Ref. Debit Credit Dec 31 Salaries Expense (1) $ 1,200 $ 0 Salaries Payable 0 1,200 To accrue salaries at December 31. 31 Interest Expense Interest Payable To accrue interest expense at December 31. 31 Fees Receivable To record revenue earned but not yet billed. 31 Maintenance Expense Prepaid Maintenance To record December maintenance expense. 31 Advertising Expense Prepaid Advertising To record December advertising expense. 31 Rent Expense To accrue one-half month's rent expense. 31 Interest Receivable To accrue interest earned in December 31 Depreciation Expense-Equipment Accumulated Depreciation-Equipment 4 4 4 4 To record annual depreciation on equipment. (2) 275 0 0 275 (3) 1,000 0 0 1,000 (4) 125 205 0 125 (5) 300 0 0 300 6 180 0 0 180 (7) 62 0 0 52 62 (8) 2,600 0 0 2,600 d th Sa Advertising Expense tries in the general journal. Accumulated Depreciation-Equipment Ref. Debit Credit 1,200 $ 0 0 1,200 (1) S To Depreciation Expense-Equipment In (2) 275 Fees Receivable 0 275 Interest Expense Fe Interest Income (3) 1,000 0 1,000 Td Interest Payable 1 M Interest Receivable (4) 125 0 125 Maintenance Expense To 31 A Prepaid Advertising (5) 300 0 0 300 To Prepaid Maintenance 31 Re Printing Revenue Tod Rent Expense 31 In Rent Payable Salaries Expense To 31 D Salaries Payable Accumulated Depreciation-Equipment + To record annual depreciation on equipment. (6) 180 0 0 180 (7) 62 52 20 0 62 (8) 2.600 0 0 2,600