Sweeney & Associates, a large marketing firm, adjusts the accounts at the end of each month. The following information is available for the year ending Dec. 31,2009:1. a bank loan had been obtained on Dec. 1. Accrued interest on the loan at Dec 31 amounts to $1,200. No interest expense has yet been recorded.2. depreciation of the firms office building is based on an estimated life of 25 years. The building was purchased in 2005 for $330,0003. Accrued, but unbilled, revenue during Dec amounts to %64,0004. on March 1, the firm paid $1,800 to renew a 12-month insurance policy. the entire amount was recorded as prepaid insurance5. the firm received $14,000 from King Biscuit Company in advance of developing a six-month marketing campaign. the entire amount was initially recorded as unearned revenue. at Dec 31, $3,500 had actually been earned by the firm6. the company’s policy is to pay its employees every friday. since Dec 31 fell on a Wed, there was an accrued liability for salaries amounting to $2,400A) Record the necessary adjusted journal entries on Dec 31, 2009B) by how much did Sweeney & Associate’ net income increase or decrease as a result of the adjusting entries performed in part A? (ignore income taxes)
S.no.1 2 3 Date31-Dec-09 31-Dec-09 31-Dec-09 Adjusting EntriesParticularsInterest expenseInterest accrued on loan Debit1200 Credit1200 Depreciation expenseAccumulated depreciation – Office…
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