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 Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense Debit $ 8, 800 13,800 5,760 2,800 $ 1,800 10,000 4,800 43,560 29,000 $60,160 $60, 160 At year-end, the following additional information is available. 1. The balance of Prepaid Rent, $5,760, represents payment on October 31, 2021, for rent from November 1, 2021. to April 30, 2022 2. The balance of Deferred Revenue, $1,800, represents payment in advance from a customer. By the end of the year, $450 of the services have been provided 3. An additional $600 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2022 4. The balance of Supplies. $2.800, represents the amount of office supplies on hand at the beginning of the year of $1,100 plus an additional $1,700 purchased throughout 2021. By the end of 2021. only $680 of supplies remains

Answer 1

DEMON DEACONS CORPORATION Adjusted Trial Balance December 31,2021 Accounts Debit Credit Cash S 8.800 Accounts Receivables $ 13,800 Prepaid rent $ 3,840 Supplies $ 2,120 Deferred Revenue $ 1,350 Salaries Paybale $ 600 Common Stock $10,000 Retained Earnings $ 4,800 Service Revenue $44,010 Salaries Expense $ 29,600 Rent Expense $ 1,920 Supplies Expense $ 680 Total $60,760 $60,760

Working Notes: 1 Rent Expenses = $5,760*2/6 = $1.920 Prepaid Rent = $5,760*4/6 = $3,840 2 Deferred Revenue = $1,800-$450 = $1,350 Service Revenue = $43,560+$450 = $44,010 3 Salaries Expense = $29,000+S600 = $29,600 4 Supplies = $2,800-$680 = $2,120