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Item 6

Item 6 2 points

The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2021, trial balances contained the following account information:

	Nov. 30			Dec. 31
	Dr.	Cr.		Dr.	Cr.
Supplies	3,400			4,900
Prepaid insurance	7,900			5,450
Salaries payable		19,500			16,900
Deferred rent revenue		5,800			2,900

The following information also is known:

1. The December income statement reported $3,900 in supplies expense.
2. No insurance payments were made in December.
3. $19,500 was paid to employees during December for salaries.
4. On November 1, 2021, a tenant paid Righter $8,700 in advance rent for the period November through January. Deferred rent revenue was credited.

Required:
1. Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30.
2. Using the above information, prepare the adjusting entries Righter recorded for the month of December.

Required 2 Required 1 Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30. Supplies Prepaid Insurance Beg. Bal Beg. Bal 3,400 3,900 7,900 2,450 5,800 5,450 End. Bal. 4,900 End. Bal, Salaries Payable Deferred Rent Revenue 19,500 Beg. Bal 19,500 Beg. Bal. 5,800 16,900 2,900X End. Bal 16,900 End. Bal. Required 1 Required 2>

Using the above information, prepare the adjusting entries Righter recorded for the month of December. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	Dec 31, 2021	Supplies expenseselected answer incorrect	3,900selected answer incorrect	not attempted
		Suppliesselected answer incorrect	not attempted	3,900selected answer incorrect
2	Dec 31, 2021	Insurance expenseselected answer incorrect	not attempted	not attempted
		Prepaid insuranceselected answer incorrect	not attempted	not attempted
3	Dec 31, 2021	Deferred rent revenueselected answer correct	2,900selected answer correct	not attempted
		Rent revenueselected answer correct	not attempted	2,900selected answer correct

Answer 1

Righter Shoe Store Company Bal 3900 Journal Enteries Trans. Particulars a. Supplies Expense a/c To Supplies (Supplies expensed) Dr. Debit in $ Credit in $ 3900 3900 Purchased Supplies 3400 Supplies Expense 5400 Bal 8800 4900 8800 b. Dr. 2450 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) 2450 Bal Prepaid Insurance 7900 2450 Bal 5450 Dr. 16900 7900 7900 Salary Expense a/c To Salary Payable (Salary accrued) 16900 Salary paid 19500 16900 d. Dr, 2900 Salaries Payable 19500 Bal Accrued Salary 16900 36400 Deferred Rent Revenue a/c To Rent Revenue (Rent earned) 2900 Bal 36400 5800 Deferred Rent Revenue Rent Revenue 2900 Bal Bal 2900 5800 5800