The Tamarisk 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.

		Debit			Credit
Prepaid Advertising		$	5,980
Equipment			174,400
Accumulated Depreciation-Equipment					$	61,000
Notes Payable						84,240
Unearned Service Revenue						17,000
Ticket Revenue						378,300
Advertising Expense			17,170
Salaries and Wages Expense			67,000
Interest Expense			1,420

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. Tamarisk 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 340 coupon ticket books at $50 each. 180 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 $5,980 and was debited to Prepaid Advertising. The company has used $2,350 of the advertising as of December 31, 2020.
5.		Salaries and wages accrued but unpaid at December 31, 2020, were $3,330.

Prepare any adjusting journal entries necessary for the year ended December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit ci i Determine Tamarisk's income before and after recording the adjusting entries. (Enter loss using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Income before Adjustments Income after Adjustments