Question

I need help with 13-16

Use the following to answer questions 13-14 The company incurs employee salaries of $25,000 for the last week of December which will be paid on January 5th. 13. Record the adjusting entry on December 31st related to the employee salaries Account Debit Credit 14. $ Indicate by how much net income in the income statement is higher or lower if the adjustment in #13 is not recorded (if lower put"-" in front of your answer). Chapter 3 Page 3-2 Use the following to answer questions 15 - 16 On December 1st, the company pays a local radio station $60,000 for radio ads that were to be aired equally throughout the next four months. Prepaid Advertising was debited on December 1st and no other entries regarding this transaction were made since then. 15. $ After the adjusting entry has been recorded on December 31st, determine the amount of advertising expense for the year ended December 31st 16. $ After the adjusting entry has been recorded on December 31st, determine the ending balance in the prepaid advertising account that should be recorded on the December 31st Balance Sheet.

Answer 1

Credit Answer 13 Account Salaries Salaries payable To record outstanding salaries Debit 25,000 $ 25,000 Answer 14 If adjustment in #13 is not recorded net income would be higher by $25,000. Answer 15 $15,000 Answer 16 $45,000