Question

Consider the following situations for Shocker: 1. On November 28, 2021. Shocker receives a $3.750 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 $2.550 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 $7,500 will be paid on January 7, 2022 4. On August 31, 2021. Shocker borrows $65.000 from a local bank. A note is signed with principal and 6% interest to be paid on 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.) View transaction list Journal entry worksheet 2 3 4 On November 28, 2021, Shocker receives a $3,750 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. Record the adjusting entry for deferred revenue at its year-end of December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal

Answer 1

Adjusting entries

No	Account and explanation	Debit	Credit
1	Deferred revenue (3750/3)	1250
	Service revenue		1250
2	Advertising expense (2550/3)	850
	Prepaid advertising		850
3	Salaries expense	7500
	Salaries payable		7500
4	Interest expense (65000*6%*4/12)	1300
	Interest payable		1300