Question

The Righter Shoe Store Company prepares monthly financial statements for Its bank. The November 30 and December 31, 2021, trial balances contalned the following account Information: Nov. 30 Dec. 31 Dr. Cr. Dr. Cr. Supplies Prepaid insurance Salaries payable 2,8ee 4, 300 7,30e 5,150 16,5ee 16, 300 Deferred rent revenue 2,300 4,600 The following Informatlon also is known: a. The December Income statement reported $3,300 in supplies expense. b. No Insurance payments were made in December. c. $16,500 was pald to employees during December for salarles. d. On November 1, 2021, a tenant pald Righter $6,900 in advance rent for the perlod 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30. Prepaid Insurance Supplies Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries Payable Deferred Rent Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. < Required 1 Required 2 >

Answer 1

Requirement 1:

Supplies					Prepaid Insurance
Beg. Bal.	$2,800				Beg. Bal.	$7,300
	$4,800	$3,300					$2,150
End. Bal.	$4,300				End. Bal.	$5,150
Salaries Payable					Deferred Rent Revenue
Beg. Bal.		$16,500			Beg. Bal.		$4,600
	$16,500	$16,300				$9,200	$6,900
End.Bal.		$16,300			End. Bal.		$2,300

Requirement 2:

Adjusting entries:

Date	Account title and explanation	Debit	Credit
Dec 31,2021	Insurance expense	$2,150
	Prepaid insurance		$2,150
	[To record insurance expense]
Dec 31,2021	Salaries expense	$16,300
	Salaries payable		$16,300
	[To record accrued salaries expense]
Dec 31,2021	Deferred rent revenue	$9,200
	Rent revenue		$9,200
	[To record rent revenue form deferred]
Dec 31,2021	Supplies expense	$3,300
	Supplies		$3,300
	[To record supplies expense]