Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with Part B of this question. The list of accounts i can use is listed on the word document. I need this
I need help with Part B of this question. The list of accounts i can use is listed on the word document. I need this in the next 3 hours.
Using Your Judgment 3-4 (Part Level Submission) The Amato Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss the renewal of a loan. The accounts listed below appeared in the December 31, 2014, trial balance. Prepaid Advertising Equipment Accumulated DepreciationEquipment Notes Payable Unearned Service Revenue Ticket Revenue Advertising Expense Salaries and Wages Expense Interest Expense $ Debit 6,290 214,400 Credit $ 63,700 89,640 19,000 356,700 17,020 65,230 1,500 Additional information is available as follows. 1. The equipment has an estimated useful life of 16 years and a salvage value of $36,800 at the end of that time. Amato uses the straightline method for depreciation. 2. The note payable is a oneyear note given to the bank January 31 and bearing interest at 10%. Interest is calculated on a monthly basis. 3. Late in December 2014, the theater sold 380 coupon ticket books at $50 each. 120 of these ticket books can be used only for admission any time after January 1, 2015. The cash received was recorded as Unearned Service Revenue. 4. Advertising paid in advance was $6,290 and was debited to Prepaid Advertising. The company has used $2,420 of the advertising as of December 31, 2014. 5. Salaries and wages accrued but unpaid at December 31, 2014, were $3,750. Prepare any adjusting journal entries necessary for the year ended December 31, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Your answer is partially correct. Try again. Prepare any adjusting journal entries necessary for the year ended December 31, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Depreciation Expense Accumulated DepreciationEquipment 2. Debit Credit 11100 11100 Interest Expense Interest Payable 3. Unearned Service Revenue Service Revenue 4. 13000 13000 2420 2420 Salaries and Wages Expense 3750 Salaries and Wages Payable 3750 5. Attempts: 3 of 3 used *(b1) Determine Amato's income before and after recording the adjusting entries. (If an amount reduces the account balance then enter with negative sign.) Incom e befor e Adjus tment s $ : $ Incom e after Adjus tment Attempts: 0 of 3 used List of Accounts I can use for Part B. Accumulated DepreciationEquipment Advertising Expense Depreciation Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Prepaid Advertising Salaries and Wages Expense Salaries and Wages Payable Service Revenue Unearned Service RevenueStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started