Question

wywo Consider the following situations for Shocker: 16.66 points 1. On November 28, 2021, Shocker receives a $3,600 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,520 for 30 radio ads that were to be alred, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,400 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $64,000 from a local bank. A note is signed with principal and 9% Interest to be paid on August 31, 2022. (8 04:26:35 eBook Required: Record the necessary adjusting entries for Shocker at December 31, 2021. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. Do not round Intermediate calculations.) References View transaction list View journal entry worksheet No General Journal Debit Date December 31 Deferred Revenue Credit 1 2 December 31 No Transaction Recorded 3 December 31 No Transaction Recorded 4 December 31 No Transaction Recorded

Answer 1

Prepare journal entries as follows:

Debit Credit Date Accounts Title and Explanation Dec. 31. 2021 1 Deferred revenue ($3600/3) Service revenue $1.200 $1.200 $840 Advertising expense Prepaid advertising ($2520 x 10/30) $840 $7.400 Salaries expense Salaries payable $7,400 $1.920 Interest Expense Interest payable (564.000 x 9% x 4/12) $1,920