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: Supplies Prepaid insurance Salaries payable Deferred rent revenue Nov. 30 Dr. Cr 1,5ee 6,000 10,000 2,000 Dec. 31 Dr. Cr 3,800 4,500 15,000 1. eee The following information also is known: a. The December income statement reported $2,000 in supplies expense. b. No insurance payments were made in December c. $10,000 was paid to employees during December for salaries d. On November 1, 2021. a tenant paid Righter $3,000 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 bglances 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. Supplies Prepaid Insurance Beg Bal Beg Bal End. Bal End. Bal Salaries Payable Deferred Rent Revenue Beg. Bal Beg Bal End. Bal. End. Bal. Recured Required 2 >

Answer 1

1. T Account

Supplies
Beg Bal	$1,500.00
Supplies Purchases (BF)	$3,500.00	Supplies expense	$2,000.00
End Bal	$3,000.00
Prepaid Insurance
Bal	$6,000.00
		Insurance expense (bf)	$1,500.00
End Bal	$4,500.00
Salaries Payable
		Beg Bal	$10,000.00
Cash	$10,000.00	Salaries expense (Bf)	$5,000.00
		End bal	$15,000.00
Deferred Rent Revenue
Rent revenue (bf)	$1,000.00	Beg Bal	$2,000.00
		End bal	$1,000.00

Journl Entry- The Righter Shoe Company
Date	Account Titles	Debit	Credit
31-Dec	Insurance Expense	$1,500.00
	Prepaid Insurance		$1,500.00
	Salaries Expense	$5,000.00
	Salaries Payable		$5,000.00
	Deferred Rent Revenue	$1,000.00
	Rent Revenue		$1,000.00