Question

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: 

The following information also is known: 

a. The December income statement reported $2.100 in supplies expense. 

b. No insurance payments were made in December 

c. $10.500 was paid to employees during December for salaries. 

d. On November 1, 2021, a tenant paid Righter $3,300 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

Answer 1

solution mu T- Accounts for the righter shoe store company ہ ہ نحمدہ ہ ہہم supplies beginning Balance 1.600 2.100 expenses Purchass 3,600 end balance 3,100 working Notes calculation of purchases - expenses & ending balance el opening Balance - 2,100 +3.1001 1.600 - 3,600 Prepaid insurance beginning bal 6,100 1,550 expense ending balance 4,550 given, no Payments are made expense = beginning balance (-) ending Balance - 6,1006) 4550

salaries and wages Payable beginning balance 10,500 wages Paid 10.500 15,100 Acerved wages end Balance 15,100 Note 10.500 has been paid, so cowent month wages will be new accrued one. de fe red rent revenue nducember beginning Balance 9,200 rent revenue earned 1.100 end balance 1.100 Note: rent paid for 3 months = $3,300 monthly rent = $3,300 = 1.100

entries for the month of Adjusting December Date Account title and explanation Debit Credit Dec-31 9021 1,550 Insurance expense Alle 1.550 Prepaid Insurance [to recand insurance expenses salaries and wagy apt 15,100 salaries and wasy Payable (to recand salaries and Dec-31 2021 15.100 and wages accrued Dec-31 1.100 2021 1,100 Deferred rent recenue Ale Rent revenue Ab (Torecand rent recone earned