Current Attempt in Progress

A review of the ledger of Wildhorse Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries.

1.Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $750 each per week, and three employees earn $480 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.

2.Unearned Rent Revenue $400,410. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,010 security deposit that is not refundable until occupancy is terminated. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.

Date		Term (in months)		Monthly Rent		Number of Leases
Nov. 1		6		$6,620		5
Dec. 1		6		$6,530		4

3.

Prepaid Advertising $8,400. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below.

Contract		Date		Amount		Number of Magazine Issues
A650		May 1		$3,600		12
B974		Oct. 1		4,800		24

The first advertisement runs in the month in which the contract is signed.

4.

Notes Payable $62,400. This balance consists of a note for one year at an annual interest rate of 12%, dated June 1.

Prepare the adjusting entries at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 2,520.)

List of Accounts

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Building
• Accumulated Depreciation-Equipment
• Administrative Expenses
• Admissions Revenue
• Advertising Expense
• Allowance for Doubtful Accounts
• Bad Debt Expense
• Buildings
• Cash
• Common Stock
• Cost of Goods Sold
• Current Maturity of Long-Term Debt
• Delivery Expense
• Depreciation Expense
• Dividends
• Dues Revenue
• Equipment
• Green Fees Revenue
• Income Summary
• Income Tax Expense
• Insurance Expense
• Interest Expense
• Interest Payable
• Interest Receivable
• Interest Revenue
• Inventory
• Land
• Maintenance and Repairs Expense
• Mortgage Payable
• No Entry
• Notes Payable
• Notes Receivable
• Office Expense
• Owner's Capital
• Owner's Drawings
• Prepaid Advertising
• Prepaid Insurance
• Prepaid Rent
• Property Tax Expense
• Property Tax Payable
• Rent Expense
• Rent Receivable
• Rent Revenue
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Discounts
• Sales Returns and Allowances
• Sales Revenue
• Selling Expenses
• Service Revenue
• Subscription Revenue
• Supplies
• Supplies Expense
• Telephone and Internet Expense
• Utilities Expenses
• Unearned Admissions Revenue
• Unearned Dues Revenue
• Unearned Service Revenue
• Unearned Rent Revenue
• Unearned Subscriptions Revenue