Question

Served Required information [The following information applies to the questions displayed below) The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below. Credit Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenge Common Stock Retained Earnings Service Revenue Salaries Expense Debit $ 8,500 13,500 5,400 2,500 $1,500 10,000 4.500 41,400 21,500 $57.400 $57,400 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $5,400, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022 2. The balance of Deferred Revenue, $1,500, represents payment in advance from a customer. By the end of the year, $375 of the services have been provided 3. An additional $600 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, $2,500, represents the amount of office supplies on hand at the beginning of the year of $950 plus an additional $1,550 purchased throughout 2021. By the end of 2021. only $650 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 2021. Of no entry is required for a particular transaction/event, select "No Journal Entry Required in the first Proy 1 2 of 18 !!! Next > MacBook Air 30 000 FT F3 0 14 II ES > FB FO A ** 2 # 3 % 5 4 6 & 7 8 9 0 W E R T Y U O Р

Answer 1

1.

Date	General Journal	Debit	Credit
December 31	Rent expense	1,800
	Prepaid rent		1,800
	( To record adjusting entry of rent expense)

Rent expense for 6 months = $5,400

Rent expense for 2 months (November and December ) = 5,400 x 2/6

= $1,800

2.

Date	General Journal	Debit	Credit
December 31	Deferred revenue	375
	Service revenue		375
	( To record service revenue)

3.

Date	General Journal	Debit	Credit
December 31	Salaries expense	600
	Salaries payable		600
	( To record adjustment entry of salaries expense)

4.

Date	General Journal	Debit	Credit
December 31	Supplies expense	1,850
	Supplies		1,850
	( To record adjustment entry of supplies expense)

Supplies expense = Beginning supplies + Supplies purchased - Ending supplies

= 950+1,550-650

= $1,850

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