Question

You shipped this question le previuu View transaction list Journal entry worksheet 2 3 On November 28, 2021, Shocker receives a $3,450 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. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal

Answer 1

1.

Service revenue for 3 months = 3,450

hence, service revenue for 1 month = 3,450 x 1/3

= $1,150

Date	General Journal	Debit	Credit
December 31	Deferred revenue	$1,150
	Service revenue		$1,150
	( To record service revenue)

2.

Advertising expense for December = 2,490 x 10/30

= $830

Date	General Journal	Debit	Credit
December 31	Advertising expense	$830
	Prepaid insurance		$830
	( To record advertising expense)

3.

Date	General Journal	Debit	Credit
December 31	Salaries expense	$7,300
	Salaries payable		$7,300
	( To record salary expense)

4.

Interest expense on note = Note payable x Interest rate x Time period

= 63,000 x 8% x 4/12

= $1,680

Date	General Journal	Debit	Credit
December 31	Interest expense	$1,680
	Interest payable		$1,680
	( To record interest expense)

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