Reference no: EM132758880

The Dunbar Zoo operates a drive-through tourist attraction in Hamilton. The selected accounts appearing below reflect balances on January 1, 2017.

Prepaid Rent (expires on Nov 30, 2017): 11,000

Car: 30,000

Accumulated Amortization - Car: 2,000

Prepaid Insurance (expires on Sep 30, 2017): 9,000

Unearned Ticket Revenue: 15,000

Other Data

• On December 1, 2017 the Zoo renewed the rent contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018.
• On October 1, 2017, the Zoo renewed the insurance policy for six months and paid $6,000. The full amount was recorded as an expense.
• The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017, it was determined that $4,000 of the tickets sold in advance were not used by customers.
• A utility bill for $2,000 was received on December 31, 2017 for the amount of utility used up during November and December 2017. The bill is due on January 15, 2018.
• On December 1, 2017, the Zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The Zoo paid $4,000 in advance and recorded it as an asset.

Required

Problem 1: Adjust the entries that were made by the Dunbar Zoo on December 31, 2017.