Problem 3-5

The accounts listed below appeared in the December 31 trial balance of the Cullumber Theater.

		Debit			Credit
Equipment		$201,344
Accumulated Depreciation-Equipment					$62,560
Notes Payable					126,000
Admissions Revenue					380,000
Advertising Expense		14,550
Salaries and Wages Expense		59,870
Interest Expense		1,960

From the account balances listed above and the information given below, prepare the annual adjusting entries necessary on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,250.)

(1)		The equipment has an estimated life of 16 years and a salvage value of $24,944 at the end of that time. (Use straight-line method.)
(2)		The note payable is a 90-day note given to the bank October 20 and bearing interest at 8%. (Use 360 days for denominator.)
(3)		In December, 2,100 coupon admission books were sold at $30 each and recorded as Admissions Revenue. They could be used for admission any time after January 1.
(4)		Advertising expense paid in advance and included in Advertising Expense $1,074.
(5)		Salaries and wages accrued but unpaid $4,713.

No.	Account Titles and Explanation	Debit	Credit
(1)
(2)
(3)
(4)
(5)

What amounts should be shown for each of the following on the income statement for the year?

(1)		Interest Expense		$
(2)		Admissions Revenue		$
(3)		Advertising Expense		$
(4)		Salaries and Wages Expense		$