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The Vaughn Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss the renewal of a

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The Vaughn 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. Credit Debit $ 5,640 219,200 Prepaid Advertising Equipment Accumulated Depreciation Equipment Notes Payable Unearned Service Revenue Ticket Revenue Advertising Expense Salaries and Wages Expense Interest Expense $ 60,100 94,320 18,000 346,600 19,580 62,700 1,370 Additional information is available as follows. 1. The equipment has an estimated useful life of 16 years and a salvage value of $35,200 at the end of that time. Vaughn 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 360 coupon ticket books at $50 each. 200 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 $5,640 and was debited to Prepaid Advertising. The company has used $2,610 of the advertising as of December 31, 2020. 5. Salaries and wages accrued but unpaid at December 31, 2020, were $3,570. 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.) Debit Credit No. Account Titles and Explanation 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 Determine Vaughn's income before and after recording the adjusting entries. (Enter loss using either a negative sin preceding the number eg -45 or parentheses es. (45) Income before Adjustments Income after Adjustments

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