Question

December 31, 2018 Trial Balance of Target Inc.                                                                                                                                            

	DEBITS	CREDITS
Equipment	$192,000
Accumulated Depreciation		$60,000
Notes Payable		$90,000
Admission Revenue		$380,000
Advertising Expense	$13,680
Salaries Expense	$57,600
Interest Expense	$1,400

                                                                                         

                                                                                                                                               

FACTS:                                                                                                                                 

1. Equipment has an estimated useful life of 16 years and a salvage value of $40,000. (Target Inc. uses straight line)                                                                                                                                  

2. The note payable is a 90-day note given to the bank on October 20th and bears interest at 10% (assume a 360 day year)                                                                                                                                       

3. In December, target Inc. sold 2,000 coupon admission books at $25 each. ( These coupons cannot be used until January 1st, 2019.)   

4. Advertising expense included $1,100 that was paid in advance.                                                                                                                                            

5. Salaries that have accrued but remain unpaid are $4,700.                                                                                                                                     

Show work

Complete the Adjustments, Adjusted Trial Balance
	TRIAL BALANCE		#	ADJUSTMENTS		ADJUSTED TRIAL BALANCE
	DEBIT	CREDIT		DEBIT	CREDIT	DEBIT	CREDIT
Equipment	$192,000
Accumulated Depreciation		$60,000
Notes Payable		$90,000
Admission Revenue		$380,000
Advertising Expense	$13,680
Salaries Expense	$57,600
Interest Expense	$1,400
Salary Expense
Depreciation Expense
Interest Payable
Unearned Admission Revenue
Revenue
Prepaid advertising
Salary Payable

                                                                                               

Answer 1

1.General journal

Date	Title & explaination of accounts	Ref.	Debit	Credit
31st Dec	Depreciation Expense		$10,500
	Accumulated Depreciation-Equipment			$10,500
	(To record the adjusting entry for the depreciation on equipment)

2.General journal

Date	Account explainations &titles	Ref.	Debit	Credit
31st Dec.	Interest Expense		$1,440
	Interest payable			$1,440
	(To record the adjusting entry for accured interest expense)

3.General journal

Date	Account Explaination & Titles	Ref.	Debit	Credit
31st Dec	Admissions Revenue(2000 coupons*$30 each)		$60,000
	Unearned admissions revenue			$60,000
	(To record the adjusting entry for accured interest expense)

4.General journal

Date	Account Titles and explainations	Ref.	Debit	Credit
31st Dec.	Prepaid Advertising		$1,100
	Advertising Expense			$1,100
	(To record the adjusting entry for advertising expense)

5.General journal

Date	Account Explainations & titles	Ref.	Debit	Credit
31/12/2016	Salaries Expense		$4,700
	Salaries payable			$4,700
	(To record the adjusting entry for the accured salaries expense)