Question

 Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information:

 The following information is known for the month of December:

 1. Purchases of supplies during December total $3,200. Supplies on hand at the end of December equal $2,850.

 2. No insurance payments are made in December. Insurance cost is $1,350 per month.

 3. November salaries payable of $9,700 were paid to employees in December. Additional salaries for December owed at the end of the year are $14,700.

 4. On November 1, a tenant paid Golden Eagle $2,550 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount.

 Required:

 Show the adjusting entries that were made for supplies, prepaid insurance, salaries payable, and deferred revenue on December 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Date	General Journal	Debit	Credit
December 31	Supplies expense	$1,700
	Supplies		$1,700
	( To record supplies expense)
December 31	Insurance expense	$1,350
	Prepaid insurance		$1,350
	( To record insurance expense)
December 31	Salaries expense	$14,700
	Salaries payable		$14,700
	( To record salaries expense)
December 31	Deferred revenue	$850
	Rent revenue		$850
	( To record rent revenue)

1.

Supplies expense = Beginning supplies + Supplies purchase - Ending supplies

= 1,350+3,200-2,850

= $1,700

4.

Rent revenue for 3 months = $2,550

Rent revenue for 1 month = 2,550 x 1/3

= $850

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