Question

Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $2,100 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 $2,220 for 30 radio ads that were to be aired, 10 per month throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $6.400 will be paid on January 7, 2022 4. On August 31, 2021, Shocker borrows $54,000 from a local bank. A note is signed with principal and 9% interest to be paid lon August 31, 2022 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.)

Answer 1

Date	General Journal	Debit	Credit
December 31	Deferred revenue ($2100/3)	$700
	Service revenue		$700
	(To record amount received for services provided)
December 31	Advertising expense ($2220/30*10)	$740
	Prepaid advertisement		$740
	(To record adjusting entry for advertising)
December 31	Salaries expense	$6400
	Salaries payable		$6400
	(To record adjusting entry for accrued salaries)
December 31	Interest expense ($54000*9%*4/12)	$1620
	Interest payable		$1620
	(To record accrued interest for four months)