Question

Required information Exercise 3-14A Prepare an adjusted trial balance (LO3-3, 3-4) (The following information applies to the questions displayed below.) The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below. Credit Account Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense Debit $10,000 15,000 7,200 4,000 $ 3.000 11,000 6,000 51,200 35,000 $71,200 $71,200 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $7,200, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022 2. The balance of Deferred Revenue, $3,000, represents payment in advance from a customer. By the end of the year, $750 of the services have been provided. 3. An additional $700 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, $4,000, represents the amount of office supplies on hand at the beginning of the year of $1,700 plus an additional $2,300 purchased throughout 2021. By the end of 2021, only $800 of supplies remains

Answer 1

Date	General Journal	Debit	Credit
December 31	Rent expense	$2,400
	Prepaid rent		$2,400
	( To record rend expense)
December 31	Deferred revenue	$750
	Service revenue		$750
	( To record service revenue)
December 31	Salaries expense	$700
	Salaries payable		$700
	( To record salaries expense)
December 31	Supplies expense	$3,200
	Supplies		$3,200
	( To record supplies expense)

Rent expense for 6 months = $7,200

hence, rent expense for 2 months ( November to December ) = 7,200 x 2/6

= $2,400

Supplies expense = Beginning supplies + Supplies purchases - Ending supplies

= 1,700+2,300-800

= $3,200

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