The Nash Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss the renewal of a loan. The accounts listed below appeared in the December 31, 2017, trial balance. Debit Credit Prepaid Advertising $ 6,270 Equipment 217,600 Accumulated Depreciation-Equipment $ 55,000 Notes Payable 85,800 Unearned Service Revenue 16,000 Ticket Revenue 332,200 Advertising Expense 20,110 Salaries and Wages Expense 62,700 Interest Expense 1,350 Ignore income taxes. Additional information is available as follows. 1. The equipment has an estimated useful life of 16 years and a salvage value of $46,400 at the end of that time. Nash uses the straight-line method for depreciation. 2. The note payable is a one-year note given to the bank January 31 and bearing interest at 10%. Interest is calculated on a monthly basis. 3. Late in December 2017, the theater sold 320 coupon ticket books at $50 each. 170 of these ticket books can be used only for admission any time after January 1, 2018. The cash received was recorded as Unearned Service Revenue. 4. Advertising paid in advance was $6,270 and was debited to Prepaid Advertising. The company has used $2,520 of the advertising as of December 31, 2017. 5. Salaries and wages accrued but unpaid at December 31, 2017, were $3,510.

The Nash Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss the renewal of a loan. The accounts listed below appeared in the December 31, 2017, trial balance Debit Credit Prepaid Advertising $ 6,270 217,600 Equipment Accumulated Depreciation-Equipment $55,000 Notes Payable 85,800 Unearned Service Revenue 16,000 Ticket Revenue 332,200 Advertising Expense 20,110 Salaries and Wages Expense 62,700 Interest Expense 1,350 Ignore income taxes. Additional information is available as follows. 1. The equipment has an estimated useful life of 16 years and a salvage value of $46,400 at the end of that time. Nash uses the straight-line method for depreciation. 2. The note payable is a one-year note given to the bank January 31 and bearing interest at 10%. Interest is calculated on a monthly basis. 3. Late in December 2017, the theater sold 320 coupon ticket books at $50 each. 170 of these ticket books can be used only for admission any time after January 1, 2018. The cash received was recorded as Unearned Service Revenue. 4. Advertising paid in advance was $6,270 and was debited to Prepaid Advertising. The company has used $2,520 of the advertising as of December 31, 2017. 5. Salaries and wages accrued but unpaid at December 31, 2017, were $3,510. (a) Prepare any adjusting journal entries necessary for the year ended December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. Open Show Work Click if you would like to Show Work for this