Assessing Financial Statement Effects of Adjustments

The following information relates to December $31$ accounting adjustments for Fulton Fast Print Company. The firm$$s fiscal year ends on December $31.$

$1.$ Weekly salaries for a five$$day week total $$5,040,$ payable on Fridays. December $31$ of the current year is a Tuesday.

$2.$ Fulton Fast Print has $$28,000$ of notes payable outstanding at December $31.$ Interest of $$280$ has accrued on these notes by December $31$ but will not be paid until the notes mature next year.

$3.$ During December, Fulton Fast Print provided $$1,260$ of printing services to clients who will be billed on January $2.$ The firm uses the fees receivable account to reflect amounts earned but not yet billed.

$4.$ Starting December $1,$ all maintenance work on Fulton Fast Print$$s equipment is handled by Richardson Repair Company under an agreement whereby Fulton Fast Print pays a fixed monthly charge of $$560.$ Fulton Fast Print paid six months$$ service charge of $$3,360$ cash in advance on December $1$ and increased its Prepaid maintenance account by $$3,360.$

$5.$ The firm paid $$1,260$ cash on December $15$ for a series of radio commercials to run during December and January. One$$third of the commercials aired by December $31.$ The $$1,260$ payment was recorded in its prepaid advertising account.

$6.$ Starting December $16,$ Fulton Fast Print rented $1120$ square feet of storage space from a neighboring business. The monthly rent of $$0\mathrm{.}80$ per square foot is due in advance on the first of each month. Nothing was paid in December, however, because the neighboring business agreed to add the rent $$half of December to the January $1$ payment.

$7.$ Fulton Fast Print invested $$7,000$ cash in securities on December $1$ and earned interest of $$53$ on these securities by December $31.$ No interest will be received until January.

$8.$ Annual depreciation on the firm$$s equipment is $$3,045.$ No depreciation has been recorded during the year.