Prepare the adjusting entries that should be recorded

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Problem

Johnson's Boat Yard, Incorporated, repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30. The transactions for the past year have been journalized and posted. The following data with respect to adjusting entries at year-end are available: Johnson's winterized (cleaned and covered) three boats for customers at the end of November but did not record the service for $2,900. On October 1, Johnson's paid $1,560 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursdays in December to complete the 12-week contract. Johnson's borrowed $234,000 at a(n) 11 percent annual interest rate on April 1 of the current year to expand its boat storage facility. The loan requires Johnson's to pay the interest quarterly until the note is repaid in three years. Johnson's paid quarterly interest on July 1 and October 1. The Sanjeev family paid Johnson's $4,440 on November 1 to store its sailboat for the winter until May 1 of the next fiscal year. Johnson's credited the full amount to Unearned Storage Revenue on November 1. Get the instant assignment help. Prepare the adjusting entries that should be recorded for the Johnsons at novemeber 30 end of the current year.

Reference no: EM133906290

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