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The Jamesway Corporation had the following situations on December 2013.
On December 20, 2013, Jamesway received a $5,600 payment from a customer for services to be rendered early in 2014. Service revenue was credited.
On December 1, 2013, the company paid a local radio station $5,200 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited.
On August 31, 2013, Jamesway borrowed $90,000 from a local bank. A note was signed with principal and 9% interest to be paid on August 31, 2014.
Prepare the necessary adjusting entries at its year-end of December 31, 2013. No adjusting entries were made during the year.
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