Question

cash -debit $9,300

acct receivable -debit $143,00

prepaid rent debit $6,360

supplies - debit $3,300

deferred revenue -Credit $2,300

common stock - credit $10,000

retained earnings credit $5,300

service revenue credit $47,160

the December 31, 2021, unadjusted trial balance for demon deacons corporation is presented below.

at year end the following additional information is available

The balance of prepaid rent ,$6,360 represents payment on October 31 2021 for rent form november 1, 2021 to april 30, 2021

The balance of deferred revenue ,$ 2,300 , represents payment in advance from a customer by the end of the year.$575 of the serviced have been provided

An additional $600 in salaries is owed to employees at the end of the year but will not be paid until january 4, 2022.

The balance of supplies $3,300 represents the amount of office supplies on hand at the beginning of the year of $1,350 plus an additional $1,950 purchased throughout 2021 . by the end of the year 2021, only $730 of supplies remains.

Answer 1

Adjusting entries are the entries made for adjusting the revenue and expenses for the period in which they are incurred. It is done at the end of the accounting period after preparing the unadjusted trail balance. Date Particulars Debit Credit 31-Dec-21 Rent Expense ($6360/6x 2] $2,120 Prepaid Rent $2,120 (To Record Rent Expense) 31-Dec-21 Deferred Revenue $575 Service Revenue $575 (To record service revenue) 31-Dec-21 Salaries and Wages Expense $600 Salaries and Wages Payable $600 (To Record wages payable) 31-Dec-21 Supplies Expense ($3300-750] $2,550 Supplies $2,550 (To Record supplies Expense)