Consider the following items for Shocker Enterprises:

On November $30,2026,$ Shocker received a $$1,800$ payment from a customer for services to be rendered evenly over the next $3$ months. Deferred Revenue was recorded on November $30.$

On December $1,2026,$ the company paid a local radio station $$2,160$ for $30$ radio ads to be aired, $10$ per month, throughout December, January, and February. Prepaid Advertising was recorded for the full amount on December $31.$ Shocker had no other advertising during the year.

Employee salaries for the month of December totaling $$6,200$ will be paid on January $7,2027.$

On August $31,2026,$ Shocker borrowed $$52,000$ from a local bank. A note was signed with principal and $9\%$ interest to be paid on August $31,2027.$

Required:

Record the necessary adjusting entries for Shocker on December $31,2026.$ No prior entries were made during the year.

References

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