Reference no: EM13388693

The QEC Company owns and operates an amusement park. The following are selected accounts from the QEC Company's trial balance as of December 31:

	Debit	Credit
Equipment	$973,400
Accumulated Depreciation - Equipment		$304,200
Notes Payables		456,300
Admissions Revenue		1,926,600
Advertising Expense	69,400
Salaries Expense	292,000
Interest Expense	7,100

The following information is also available:

1. The equipment is depreciated using the straight-line method over its estimated life of 17 years.  The equipment has an estimated salvage value of $202,800

2. The note payable carries a 8% interest rate.  It was given to the First National Bank on September17 and is due to be repaid in 270 days after that date.  (Note: Assume a 365 day year in any computations.)

3. During the Christmas holiday season, QEC Company ran a promotion for park admission tickets valid during the next year.  In total, they sold 4,980 tickets at a price of $15 each.  The sales amount was credited to Admissions Revenue.

4. Included in the Advertising Expense account balance is a $5,580 prepayment of advertising that will be aired on local radio stations during the first quarter of the next year.

5. As of December 31, there was $23,830 in salaries that had been earned but not recorded.

6. QEC Company ends its accounting year on December 31.