The QEC Company owns and operates an amusement park. The following are selected accounts from the QEC Company's trial balance as of December 31:
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Debit
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Credit
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Equipment
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$973,400
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Accumulated Depreciation - Equipment
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$304,200
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Notes Payables
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456,300
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Admissions Revenue
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1,926,600
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Advertising Expense
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69,400
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Salaries Expense
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292,000
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Interest Expense
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7,100
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The following information is also available:
1. The equipment is depreciated using the straight-line method over its estimated life of 17 years. The equipment has an estimated salvage value of $202,800
2. The note payable carries a 8% interest rate. It was given to the First National Bank on September17 and is due to be repaid in 270 days after that date. (Note: Assume a 365 day year in any computations.)
3. During the Christmas holiday season, QEC Company ran a promotion for park admission tickets valid during the next year. In total, they sold 4,980 tickets at a price of $15 each. The sales amount was credited to Admissions Revenue.
4. Included in the Advertising Expense account balance is a $5,580 prepayment of advertising that will be aired on local radio stations during the first quarter of the next year.
5. As of December 31, there was $23,830 in salaries that had been earned but not recorded.
6. QEC Company ends its accounting year on December 31.