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Skysong, Inc. has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually. 1. The December utility bill for $350 was unrecorded on December 31. Skysong paid the bill on January 11. 2. Skysong is open 7 days a week and employees are paid a total of $2,870 every Monday for a 7-day (Monday-Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28-Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. 3. Skysong signed a $36,900, 5% bank loan on November 1, 2016, due in 2 years. Interest is payable on the first day of each following month. Skysong receives a fee from Pizza Shop next door for all pizzas sold to customers using Skysong's facility. The amount owed for December is $250, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) 5. Skysong rented some of its unused warehouse space to a client for $4,920 a month, payable the first day of the following month. It received the rent for the month of December on January 2. 4. (a) Your answer is correct. For each situation, prepare the adjusting entry required at December 31. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31, 2017 Utilities Expense 350 350 Accounts Payable M Dec. 31, 2017 Salaries and Wages Expense 2. 1,640 Salaries and Wages Payable 1,640 3. Dec. 31, 2017 Interest Expense 153.75 Interest Payable 153.75 4. Dec. 31, 2017 Accounts Receivable 250 Service Revenue 250 5. Dec. 31, 2017 Accounts Receivable 4,920 Rent Revenue 4,920 (b) For each situation, prepare the journal entry to record the subsequent cash transaction in 2018. (Round answers to o decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Jan. 11, 2018 Utilities Expense Accounts Payable 2. Jan. 4, 2018 Salaries and Wages Expense Salaries and Wages Payable 3. Jan. 1, 2018 4. Jan. 4, 2018 5. Jan. 2, 2018

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