Question

Required information (The following information applies to the questions displayed below.] The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below. Credit Debit $ 9,300 14,300 6,360 3,300 Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense $ 2,300 10,000 5,300 47,160 31,500 $64,760 $64,760 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $6,360, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022.

Answer 1

--Adjusting entries

Adj #	Accounts title	Debit	Credit
#1	Rent Expense	$2,120
	Prepaid Rent ($ 6360 x 2m/6m)		$2,120
	(to adjust rent expired for 2 months out of 6 months paid in advance)
#2	Deferred Revenue	$575
	Service Revenue		$575
	(to adjust revenue earned)
#3	Salaries expense	$600
	Salaries Payable		$600
	(to record accrued salaries)
#4	Supplies expense	$2,570
	Supplies ($3300 - $ 730 available at end)		$2,570
	(to record supplies used)