Preparing adjusting entries (SO 5, 6) 1. Salaries expense $2,320 2. Rent revenue $74,000 (2) If the company paid $12,500 in salaries in 2010, what was the balance in Salaries Payable on December 31, 2009? P3-4A A review of the ledger of Remington Company at December 31, 2010, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $800 each per week, and three employees earn $600 each per week. Assume December 31 is a Tuesday. Employees do not work week- ends. All employees worked the last 2 days of December. 2. Unearned Rent $324,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. 3. Advertising expense $4,800 Date Nov. 1 Dec. 1 Term (in months) Monthly Rent Number of Leases $4,000 $8,500 3. Prepaid Advertising $15,000. This balance consists of payments on two advertising contracts The contracts provide for monthly advertising in two trade magazines. The terms of the con- tracts are as follows. PDF Watermark Remover DEMO: Purchase from www.PDFWatermarkRemover.com to remove the watermark Problems: Set A 135 Number of Magazine Contract Date Amount Issues A650 May 1 $5,400 12 B974 Oct. 1 9,600 24 The first advertisement runs in the month in which the contract is signed. 4. Notes Payable $120,000. This balance consists of a note for one year at an annual interest rate of 9%, dated June 1. Instructions Prepare the adjusting entries at December 31, 2010. (Show all computations.) 4. Interest expense $6,300