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Business, 25.02.2020 16:56 Greghairston9813
The Amato 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 CreditEquipment $202,928 Accumulated Depreciation-Equipment $64,400Notes Payable 162,000Admissions Revenue 386,300Advertising Expense 15,500 Salaries and Wages Expense 57,450 Interest Expense 2,520 From the account balances listed above and the information given below, prepare the annual adjusting entries necessary on December 31. (1)The equipment has an estimated life of 16 years and a salvage value of $24,432 at the end of that time. (Use straight-line method.)
(2)The note payable is a 90-day note given to the bank October 20 and bearing interest at 8%. (Use 360 days for denominator.)
(3)In December, 2,160 coupon admission books were sold at $30 each and recorded as Admissions Revenue. They could be used for admission any time after January 1.
(4)Advertising expense paid in advance and included in Advertising Expense $1,106.
(5)Salaries and wages accrued but unpaid $4,737.
Adjusting Entries
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