The RNW Company owns and operates an amusement park. The following are selected accounts from the RNW Company s trial balance as of December 31: Debit CreditEquipment $1068100Accumulated Depreciation Equipment $333800Notes Payables 500700Admissions Revenue 2113900Advertising Expense 76100Salaries Expense 320400Interest Expense 7800The following information is also available:1. The equipment is depreciated using the straight-line method over its estimated life of 16 years. The equipment has an estimated salvage value of $2225002. The note payable carries a 10% interest rate. It was given to the First National Bank on October 17 and is due to be repaid in 240 days after that date. (Note: Assume a 365 day year in any computations.)3. During the Christmas holiday season RNW Company ran a promotion for park admission tickets valid during the next year. In total they sold 2600 tickets at a price of $33 each. The sales amount was credited to Admissions Revenue.4. Included in the Advertising Expense account balance is a $6120 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 $26150 in salaries that had been earned but not recorded.6. RNW Company ends its accounting year on December 31.Instructions:1. Prepare the annual adjusting journal entries necessary as of December 31.2. Compute the amount of the following account balances that should be shown on the income statement for the year:a. Interest Expenseb. Admissions Revenuec. Advertising Expensed. Salaries Expense

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