The Sheffield 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, 2020, trial balance.

Additional information is available as follows.

1.		The equipment has an estimated useful life of 16 years and a salvage value of $40,000 at the end of that time. Sheffield 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 2020, the theater sold 390 coupon ticket books at $50 each. 240 of these ticket books books have been used by year-end. The cash received was recorded as Unearned Service Revenue.
4.		Advertising paid in advance was $5,510 and was debited to Prepaid Advertising. The company has used $2,500 of the advertising as of December 31, 2020.
5.		Salaries and wages accrued but unpaid at December 31, 2020, were $3,680.

Debit Credit $ 5,510 187,200 $ Prepaid Advertising Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Service Revenue Ticket Revenue Advertising Expense Salaries and Wages Expense Interest Expense 57,500 92,640 19,500 348,100 17,580 71,800 1,350