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 $10,000 15,000 7,200 4,000 Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense $ 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

Adjusted trial balance

	Debit	Credit
Cash	10000
Account receivable	15000
Prepaid rent	4800
Supplies	800
deferred revenue		2250
Salary payable		700
Common Stock		11000
Retained earnings		6000
Service revenue		51950
Salaries expense	35700
rent expense	2400
Supplies expense	3200
Total	71900	71900