Question: 1. Suppose a customer rents a vehicle for three months from Commodores Rental on November 1, paying $4,500 ($1,500/month).
(1) Record the rental for Commodores on November 1.
(2) Record the adjusting entry on December 31.
(3) Calculate the year-end adjusted balances of the Unearned Revenue and Service Revenue accounts (assuming the balance of Unearned Revenue at the beginning of the year is $0).
2. Fighting Irish Incorporated pays its employees $4,200 every two weeks ($300/ day). The current two-week pay period ends on December 28, 2012, and employees are paid $4,200. The next two-week pay period ends on January 11, 2013, and employees are paid $4,200.
(1) Record the adjusting entry on December 31, 2012.
(2) Record the payment of salaries on January 11, 2013.
(3) Calculate the 2012 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2012 is $0).