Wildhorse Corp. has reported pre-tax income of $279,000 for calendar 2023, before considering the five items below. 1. Interest on a $42,000, 7%, six-year note payable was last paid on September 1, 2022. 2. On May 31, 2023, Wildhorse entered into a contract to provide services to a customer for 18 months beginning June 1. The customer paid the $36,000 fee in full on June 1 and Wildhorse credited it to Service Revenue. 3. On August 1, 2023, Wildhorse paid a year's rent in advance on a warehouse and debited the $49,920 payment to Prepaid Rent. 4. Depreciation on office equipment for 2023 is $18,100. 5. On December 18, 2023, Wildhorse paid the local newspaper $1,200 for an advertisement to be run in January of 2024, debiting it to Prepaid Expenses.

Wildhorse Corp. has reported pre-tax income of $279,000 for calendar 2023 , before considering the five items below. 1. Interest on a $42,000,7%, six-year note payable was last paid on September 1,2022. 2. On May 31, 2023, Wildhorse entered into a contract to provide services to a customer for 18 months beginning June 1 . The customer paid the $36,000 fee in full on June 1 and Wildhorse credited it to Service Revenue. 3. On August 1,2023, Wildhorse paid a year's rent in advance on a warehouse and debited the $49,920 payment to Prepaid Rent. 4. Depreciation on office equipment for 2023 is $18,100. 5. On December 18,2023, Wildhorse paid the local newspaper $1,200 for an advertisement to be run in January of 2024, debiting it to Prepaid Expenses