le Edit View History Window Help Chapter 3 recelves a $2.400 payment from a cust

Question

le Edit View History Window Help Chapter 3 recelves a $2.400 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. Prepaid Advertising is debited. d' On August 31, 2018, Shocker borrow s $56,000 from a local bank. Pmer,20 he company pays a loal n0 for 30 radio ads that were to be aired. 1 ar month, hrughout December Jnuay and February, c. Employee salaries for the month of December totaling $6,600 wll be paid on January 7, 2019. were to be aired, 10 per month, throughout December, January, and February Ante is signed with principal and 6% interest to be paid on August 31, 2019. Required Record the necessary adjusting entries for Shocker at December 31, 2018. No adjusting entries were made during the year. (f no entry is required select "No journal entry required" in the first account field.) for a transactionevent View transaction list Journal entry worksheet Record the adjustment for revenue earned. Note: Enter debits before credits. ransaction General Journal DebitCredit

Explanation / Answer

Adjusting entry :

Transaction general journal Debit credit Dec 31 Deferred revenue (2400/3) 800 Service revenue 800 (To record service revenue) Dec 31 Advertising expense (2280/30*10) 760 Prepaid advertising 760 (To record advertising expense) Dec 31 Salary expense 6600 Salary payable 6600 (To record salary expense) Dec 31 Interest expense (56000*6%*4/12) 1120 Interest payable 1120 (To record accured interest)

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