Write the adjusting entry for the following Salaries Payable -0- There are eight
ID: 2489500 • Letter: W
Question
Write the adjusting entry for the following
Salaries Payable -0-
There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $700 each per week, and three employees earn $600 each per week. December 31, 2014 is a Tuesday. Employees do not work weekends, and all employees worked the full week ended January 3, 2015.
Unearned Rent Revenue $429,000
The company began subleasing office space in its new building on November 1, 2014. Each tenant is required to make a $5,000 security deposit that is not refundable until occupancy is terminated. At December 31, 2104, the company had the following rental contracts that are paid in full for the entire term of the lease:
Date Term in Months Monthly Rent Number of Leases
Nov 1 6 $6,000 5
Dec 1 6 $8,500 4
Prepaid Advertising $13,200
This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below:
Contract Date Amount Number of Magazine Issues
A101 May 1 $6,000 12
B302 Oct 1 $7,200 24
The first advertisement runs in the month in which the contract is signed.
Notes Payable $60,000
This balance consists of a note for one year at an annual interest rate of 12%, dated June 1, 2014.
Explanation / Answer
Debit Credit Salary A/C dr. 2,120 To Salary Payable A/C 2,120 Unearned rent revenue A/C dr. 94,000 To Rent A/C 94,000 Advertising A/C dr. 5,800 To Prepaid Advertising A/C 5,800 Interest A/C dr. 4,200 To accured interest on notes payable A/C 4,200
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