The accounts listed below appeared in the December 31 trial balance of the Savard Theater. Debit Credit
Equipment $192,000
Accumulated DepreciationâEquipment $60,000
Notes Payable 90,000
Admissions Revenue 380,000
Advertising Expense 13,680
Salaries Expense 57,600
Interest Expense 1,400

a. 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 $22,944 at the end of that time. (Use straight-line method.)
2. The note payable is a 90-day note given to the bank on October 20 and bearing interest at 8%. (Use 360 days for denominator.)
3. In December, 1,910 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 $1,025.
5. Salaries and wages accrued but unpaid $4,408.