The accounts listed below appeared in the December 31 trial balance of the Savard Theater. Debit Credit
Equipment $192,000
Accumulated DepreciationâEquipment $60,000
Notes Payable 90,000
Admissions Revenue 380,000
Advertising Expense 13,680
Salaries Expense 57,600
Interest Expense 1,400

a. From the account balances listed above and the information given below, prepare the annual adjusting entries necessary on December 31.
1. The equipment has an estimated life of 16 years and a salvage value of $22,944 at the end of that time. (Use straight-line method.)
2. The note payable is a 90-day note given to the bank on October 20 and bearing interest at 8%. (Use 360 days for denominator.)
3. In December, 1,910 coupon admission books were sold at $30 each and recorded as Admissions Revenue. They could be used for admission any time after January 1.
4. Advertising expense paid in advance and included in Advertising Expense $1,025.
5. Salaries and wages accrued but unpaid $4,408.

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)