Question

Exercise 3-10A Record year-end adjusting entries (LO3-3) Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $3,900 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 $2,580 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 $7,600 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $66,000 from a local bank. A note is signed with principal and 8% 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 1 2 3 4 > On November 28, 2021, Shocker receives a $3,900 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. < Prev 3 of 3 Next

Answer 1

	General Journal	Debit	Credit
a	Deferred revenue	1300		=3900*1/3
	Service revenue		1300
b	Advertising expense	860		=2580*10/30
	Prepaid advertising		860
c	Salaries expense	7600
	Salaries payable		7600
d	Interest expense	1760		=66000*8%*4/12
	Interest payable		1760