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In: AccountingProblem 3-3 (Part Level Submission)A review of the ledger of Windsor, Inc. at December 31...Problem 3-3 (Part Level Submission)A review of the ledger of Windsor, Inc. at December 31 producesthe following data for the preparation of annual adjustingentries:1.Salaries and Wages Payable, $0. There are 9 salaried employees.4 employees receive a salary of $1,230 each per week, and 5employees earn $750 each per week. Employees do not work weekends.All employees worked two days after the last pay period and beforeDecember 31.2.Unearned Rent Revenue, $376,020. The company began subleasingcondos in its new building on November 1. Each tenant has to make a$5,400 security deposit that is not refundable until occupancy isended. At December 31, the company had the following rentalcontracts that were paid in full for the entire term of thelease:DateTerm(in months)Monthly RentNumberof LeasesNov. 16$3,9106Dec. 16$10,37033.Prepaid Advertising, $14,820. This balance consists of paymentson two advertising contracts. The contracts provide for monthlyadvertising in two trade magazines. The terms of the contracts areas follows:ContractDateAmountNumber ofmagazines IssuesA650May 1$6,78012B974Oct. 18,04024The first advertisement runs in the month in which the contractis signed.4.Notes Payable, $80,520. This balance consists of a one year, 9%,note that is dated June 1.Windsor is preparing for a meeting with potential investors.What is the net effect of the adjusting entries on net income?