Assessing Financial Statement Effects of Transactions and Adjustments

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

1. Weekly salaries for a five-day week total $3,600, payable on Fridays. December 31 of the current

year is a Tuesday.

2. Fulton Fast Print has $20,000 of notes payable outstanding at December 31. Interest of $200 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 $900 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 Prints equipment is handled by Richard-

son Repair Company under an agreement whereby Fulton Fast Print pays a fixed monthly charge of

$400. Fulton Fast Print paid six months service charge of $2,400 cash in advance on December 1

and increased its Prepaid maintenance account by $2,400.

5. The firm paid $900 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 $900 payment was recorded

in its prepaid advertising account.

6. Starting December 16, Fulton Fast Print rented 800 square feet of storage space from a neighboring

business. The monthly rent of $0.80 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

for one-half of December to the January 1 payment.

7. Fulton Fast Print invested $5,000 cash in securities on December 1 and earned interest of $38 on

these securities by December 31. No interest will be received until January.

8. Annual depreciation on the firms equipment is $2,175. No depreciation has been recorded during

the year.

Required

Prepare Fulton Fast Print Companys accounting adjustments required at December 31 using the financial

statement effects template