Question

Required information [The following information applies to the questions displayed below.] The December 31, Year 1, unadjusted trial balance for a company is presented below. Credit Debit $ 8,400 13,400 5,280 2,400 Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense $ 1,400 11,000 4,400 39,680 27,000 $56,480 $56,480 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $5,280, represents payment on October 31, Year 1, for rent from November 1, Year 1, to April 30, Year 2. 2. The balance of Deferred Revenue, $1,400, represents payment in advance from a customer. By the end of the year, $350 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, Year 2. 4. The balance of Supplies, $2,400, represents the amount of office supplies on hand at the beginning of the year of $900 plus an additional $1,500 purchased throughout Year 1. By the end of Year 1, only $640 of supplies remains.

Required:

1. Update account balances for the year-end information by recording any necessary adjusting entries. No prior adjustments have been made in Year 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

Answer 1

Dec 31	Rent expense	1760
	Prepaid rent		1760
	(5280/6)*2
Dec 31	Deferred revenue	350
	Service Revenue		350
Dec 31	Salaries expense	700
	Salaries payable		700
Dec 31	Supplies Expense	1760
	Supplies		1760
	(900+1500)-640