P3-45: Assessing Financial Statement Effects of Transactions andAdjustments.

The following information related to December 31 accountingadjustment for fulton fast print company. The firm’s fiscal yearends on December 31.

1. Weekly salaries for a five-day week total 3,600 payable onFridays. December 31 of the current year is a Tuesday.

2. Fulton Fast Print has 20,000 of notes payable outstanding atDecember 31. Interest of $200 has accrued on these notes byDecember 31 but will not be paid until the notes mature nextyear.

3. During December, Fulton Fast Print provided $900 of printingservices to clients who will be billed on January 2. The firm usesthe fees receivable account to reflect amounts earned but not yetbilled.

4. Starting December 1, all maintenance work on Fulton FastPrint’s equipment is handled by Richardson Repair Company under anagreement whereby Fulton Fast Print pays a fixed monthly charge of$400. Fulton Fast Print paid six months’ service charge of 2,400cash in advance on December 1 and increased its Prepaid maintenanceamount by 2,400.

5. The firm paid $900 cash on December 15 for a series of radiocommercials to run during December and January. One-third of thecommercials aired by December 31. The $900 payment was in itsprepaid advertising account.

6. Starting December 16, Fulton Fast Print rented 800 squarefeet of storage space from a neighboring business. The monthly rentof $0.80 per square foot is due in advance on the first of eachmonth. Nothing was paid in December to the January 1 payment.

7. Fulton Fast Print invested 5,000 cash in securities onDecember 1 and earned interest of $38 on these securities byDecember 31. No interest will be received until January.

8. Annual depreciation on the firm’s equipment is 2,175. Nodepreciation has been recorded during the year.

Required

Prepare Fulton Fast Print Company’s accounting adjustmentsrequired at December 31 using the financial statement effectstemplate.

P3-46: Preparing Accounting Adjustments Refer to the informationin P3-45. Prepare accounting adjustments required at December 31using journal entries.

NOTE: Only P3-46 IS REQUIRED, but you needed theinformation from P3-45 to complete this problem