Problem E3-10:

Consider the following situations for Shocker: a) On Nov. 28, 2018, Shocker recieves a $4,500 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. b) On Dec. 1, 2018, the company pays a local radio station $2,700 for 30 radio ads that were to be aired 10 per month, throughout Dec, Jan, and Feb. Prepaid Advertising is debited. c) Employee salaries for the month of December totaling $8,000 will be paid on Jan 7, 2019. d) On August 31, 2018, Shocker borrows $70,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2019. Record the necessary adjusting entries for Shocker at December 31, 2018. No adjusting entries were made during that year.