Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 22

The Off-Campus Playhouse adjusts its accounts every month.elow is the company's unadjusted trial balance dated September 30, 2015.dditional information is provided for use in preparing the company's adjusting entries for the month of September.Bear in mind that adjusting entries have already been made for the first eight months of 2015, but not for September.)

Other Data
1.ostume rental expense for the month is $600.owever, the costume rental expense for several months has been paid in advance.
2.he building is being depreciated over a period of 25 years (300 months).
3.he fixtures and equipment are being depreciated over a period of five years (60 months).
4.n the first of each month, the theater pays the interest which accrued in the prior month on its note payable.t September 30, accrued interest payable on this note amounts to $1,062.
5.he playhouse allows local nursing homes to bring seniors to the plays on any weekday performance for a fixed price of $500 per month.n August 31, a nursing home made a $1,500 advance payment covering the months of September, October, and November.
6.he theater receives a percentage of the revenue earned by Sweet Corporation, the concessionaire operating the snack bar.or snack bar sales in September, Sweet owes Off-Campus Playhouse $4,600, payable on October 14.o entry has yet been made to record this revenue.Credit Concessions Revenue.)
7.alaries earned by employees, but not recorded or paid as of September 30, amount to $2,200.o entry has yet been made to record this liability and expense.
8.ncome taxes expense for September is estimated at $3,600.his amount will be paid in the October 15 installment payment.
9.tilities expense is recorded as monthly bills are received.o adjusting entries for utilities expense are made at month-end.
Instructions
a.or each of the numbered paragraphs, prepare the necessary adjusting entry (including an explanation).
b.efer to the balances shown in the unadjusted trial balance at September 30.ow many months of expense are included in each of the following balances (Remember, Off-Campus Playhouse adjusts its accounts monthly.hus, the accounts shown were last adjusted on August 31, 2015.)
1.tilities expense
2.epreciation expense
3.ccumulated depreciation: building
c.ssume the playhouse has been operating profitably all year.lthough the September 30 trial balance shows substantial income taxes expense, income taxes payable is a much smaller amount.his relationship is quite normal throughout much of the year.xplain.