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(Solved): The information necessary for preparing the 2021 year-end adjusting entries for Gamecock Advertisin ...




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The information necessary for preparing the 2021 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecock's fiscal year-end is December 31. 1. On July 1,2021, Gamecock receives from a customer for advertising services to be given evenly over the next 10 months: Gamecock credits Deferred Revenue. 2. At the beginning of the year, Gamecock's depreciable equipment has a cost of , a four-year life, and no salvage value. The equipment is depreciated evenly (straight-line depreciation method) over the four years. 3. On May 1,2021 , the company pays for a two-year fire and liability insurance policy and debits Prepaid Insurance. 4. On September 1, 2021, the company borrows from a local bank and signs a note. Principal and interest at will be paid on August 31, 2022. 5. At year-end there is a debit balance in the Supplies (asset) account. Only of supplies remains on hand. Required: Record the necessary adjusting entries on December 31, 2021. No prior adjustments have been made during 2021. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) ccount field.)


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The Revenue earned and Depreciation expense is as under:

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