) Explain the four Types of Adjustment Entries.

B) Glenwood Speedway Company adjust at the end of each month. Prepare the adjustment entries required on May 31 based on the following information

DATE

TRANSACTION

1st May

Borrowed $300000 cash from National Bank by issuing a 12% note payable due in three months

1st May

Paid rent for three months beginning May 1st at 90000 per month.

2nd May

Sold season tickets for a total of $910000 cash. The season includes 70 racing days, 20 in May,25 in June and 25 in July.

4th May

An agreement was reached with Snack Bar Inc. allowing that company to sell refreshments at the track in return for 10% of the gross receipt from refreshment sales.

6th May

The schedule for the 20 racing days in May and the first 10 racing days in June were printed and paid for at a cost of $12000.

31st May

Snack Bars Inc. reported that gross receipt from refreshment sales in May had been $165000 and that the 10% owed to Glenwood Speedway would be remitted on June 10.