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Gradebook ORION Downloadable eTextbook ent CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK Question 1 The Bonita Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss the renewal of a loan. The accounts listed below appeared in the December 31, 2017, trial balance. DebitCredit Prepaid Advertising $ 5,540 Equipment 163,200 Accumulated Depreciation-Equipment Notes Payable Unearned Service Revenue Ticket Revenue Advertising Expense Salaries and Wages Expense Interest Expense 63,400 88,200 15,500 369,500 18,070 61,800 1,450 Ignore income taxes Additional information is available as follows 1. The equipment has an estimated useful life of 16 years and a salvage value of $35,200 at the end of thet tie nth straightinemeth 2. The note payable is a one-year note given to the bank January 31 and bearing interest at 10%. Interest is calculated on a monthly basis. 3. Late in December 2017, the theater sold 310 coupon ticket books at s50 each. 150 of these ticket books can be used only for admission any time after January 1, 2018. The cash received was recorded as Unearned Service Revenue 4. Advertising paid in advance was 55,540 and was debited to Prepaid Advertising. The company has used $2,510 of the advertising as of December 31, 2017 s. Salaries and wages accrued but unpaid at December 31, 2017, were $3,540

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