1. John'sBoatYard,Inc.,repairs,stores,andcleansboatsforcustomers.ItiscompletingtheaccountingprocessfortheyearjustendedonNovember30.Thetransactionsforthepastyearhavebeenjournalizedandposted.Thefollowingdatawithrespecttoadjustingentriesatyear-endareavailable:
2. 2.Prepare the adjusting entries that should be recorded for Johns at November 30, end of the current year.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. John'sborrowed$300,000atan11percentannualinterestrateonApril1ofthecurrentyeartoexpanditsboatstoragefacility.TheloanrequiresJohn'stopaytheinterestquarterlyuntilthenoteisrepaidinthreeyears.John'spaidquarterlyinterestonJuly1andOctober1.
4. OnOctober1,John'spaid$2,200tothelocalnewspaperforanadvertisementtoruneveryThursdayfor12weeks.AlladshavebeenrunexceptforthreeThursdaysinDecembertocompletethe12-weekcontract.
5. The Johnson family paid John's $4,500 on November 1 to store its sailboat for the winter until May 1 of the next fiscal year. John's credited the full amount to Unearned Storage Revenue on November 1.