Question

Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances include the following account information: November 30 December 31 Debit Credit Debit Credit 1,700 Supplies Prepaid Insurance Salaries Payable Deferred Revenue 3,200 5,100 6,800 10,400 2,400 15,400 1,200 The following information also is known: a. Purchases of supplies in December total $3,900. b. No insurance payments are made in December c. $10,400 is paid to employees during December for November salaries. d. On November 1, a tenant pays Golden Eagle $3,600 in advance rent for the period November through January. Deferred Revenue is credited. 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 transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment for supplies. Note: Enter debits before credits. Debit General Journal bit Credit Transaction

Answer 1

Solution:

Adjusting entries

Transaction	General journal	Debit($)	Credit($)
a.	Expense for supplies	$2,400
	Supplies		$2,400
b.	Expense for insurance	$1,700
	Prepaid insurance		$1,700
c.	Expense for salaries	$15,400
	Payable salaries		$15,400
d.	Revenue unearned	$1,200
	service revenue		$1,200