Manuel Nunez is in the business of generating rental revenue. The following information relates to his business Manual Nunez Realty, at the close of the fiscal year ending December 31: 1 2. 3. 5. 6. 7. B 9 Manuel purchased three months of advertising in the local newspaper on November 1. Each month $300 of the advertising is used. On November 1, Manuel signed a 3-month, 5% note payable to borrow $15.600 from TD Bank. Interest is payable at the maturity of the note. Salaries due and unpaidat December 31 total $2.300 Interest of 5400 has accrued to date, on a note receivable that Manuel holds from Grant Thursten There is $100 of supplies on hand at year end. The unadjusted balance of the supplies account is $500 Manuel has not yet paid the December rent of $1.500 on the building his business uses. (Do not use accounts payable) Insurance was paid on November 1 for one year and charged to Prepaid Insurance, $1,170 Property taxes that have accrued are in the amount of $1.500. On December 1. Manuel gave Laura Palmera 2-month, note payable to settle $8,700 on accounts payable. Interestis payable at the maturity of the note On October 31. Manuel received $2.460 from Douglas Raines in payment of six months' rent for Raines's office space in the building and credited Uneamed Revenue. The bill from Capital Hydrofor December has been received but not yet entered or paid. 5400 The depreciation on furniture for the year is $1.100 10 11 SOM Prepare annual adjusting entries as of December 31. (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 tities and enter for the amounts) Debit Credit No. Account Titles and Explanation Adverting Expense 600 1. 600 Prepaid Advertising 130 2 Interest Expense 130 Interest Payable 2300 Salaries Expense 2300 Salaries Payable 400 Interest Receivable 400 Interest Revenue 400 Suonies be 400 Sunces 2:15P Question 9 of 10 9.44/10 6. Rent Expense 1500 1500 Rent Payable 7. Insurance Expense 1170 1170 Prepaid insurance 1500 B. Property Tax Expense 1500 Property Tax Payable 9. Interest Expense 58 58 Interest Payable 1230 10 Uneamed Revenue 1230 Rent Revenue 400 Les Eche 400 Accounts Pavle 12 1100 Depreciation Expense ENG 215 PM 2008-10-03