Today, Hexagon Engineering operates out of Oakville and Toronto, Ontario with offices in Edmonton, AB and Kassel, Germany and is an experienced and recognized provider of certified control system solutions and SIL 2 and 3 rated safety systems with our flagship Safety Control Unit (SCU) Fault Tolerant architecture for critical control applications. The company is built on more than 25 years of experience in the fields of safety engineering, controls and instrumentation in various industries including Water, Manufacturing, Utilities, Process and Aerospace industries. Use your analysis to explain why Amato’s bankers should be willing to wait for Amato to complete its year-end adjustment process before making a decision on the loan renewal.Īlthough Amato’s bankers are willing to wait for the adjustment process to be completed before they receive financial information, they would like to receive financial reports more frequently than annually or even quarterly.Hexagon Engineering started in 2007 as a provider of controls engineering services to the manufacturing industry. Prepare any adjusting journal entries necessary for the year ended December 31, 2017.ĭetermine Amato’s income before and after recording the adjusting entries. Salaries and wages accrued but unpaid at December 31, 2017, were $3,500.The company has used$2,500 of the advertising as of December 31, 2017. Advertising paid in advance was $6,000 and was debited to Prepaid Advertising.The cash received was recorded as Unearned Service Revenue. Two hundred of these ticket books have been used by year-end. Late in December 2017, the theater sold 350 coupon ticket books at$50 each.
Interest is calculated on a monthly basis. The note payable is a one-year note given to the bank January 31 and bearing interest at 10%.Amato uses the straight-line method for depreciation. The equipment has an estimated useful life of 16 years and a salvage value of $40,000 at the end of that time.Prepaid Advertising Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Service Revenue Ticket Revenue Advertising Expense Salaries and Wages Expense Interest Expense Debit $ 6,000 192,000 18,680 67,600 1,400 Credit $ 60,000 90,000 17,500 360,000 Īdditional information is available as follows. The accounts listed below appeared in the December 31, 2017, trial balance.ĭebit ‾ Credit ‾ Prepaid Advertising $ 6,000 Equipment 192,000 Accumulated Depreciation-Equipment $ 60,000 Notes Payable 90,000 Unearned Service Revenue 17,500 Ticket Revenue 360,000 Advertising Expense 18,680 Salaries and Wages Expense 67,600 Interest Expense 1,400 \begin&\\ The Amato Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss the renewal of a loan.
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