Question
The following accounts appeared in the December 31 trial balance of the Wildhorse Theatre: Debit Credit Equipment $1,132,800 Accumulated depreciationequipment $141,600 Notes payable 219,500 Sales
The following accounts appeared in the December 31 trial balance of the Wildhorse Theatre: Debit Credit Equipment $1,132,800 Accumulated depreciationequipment $141,600 Notes payable 219,500 Sales revenue 885,000 Rent expense 73,200 Salaries and wages expense 94,400 Interest expense 10,600 From the account balances above and the information that follows, prepare the annual adjusting entries necessary on December 31: 1. The equipment has an estimated life of 16 years and a residual value of $47,200. (Use the straight-line method.) 2. The note payable is a 90-day note given to the bank on October 20 and bearing interest at 10%. (Hint: Use number of days in your calculation.) 3. In December, 2,400 coupon admission books were sold at $22 each. They can be used for admission any time after January 1. 4. Of the Rent Expense balance, $1,300 is paid in advance. 5. Salaries accrued but unpaid are $13,900. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Use 365 days for calculation.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. List of Accounts What amounts should be shown for each of the following on the income statement for the year? 1. Interest expense $ 2. Sales revenue $ 3. Rent expense $ 4. Salaries and wages expense $?
Step 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