Question

6 Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information: Supplies Prepaid Insurance Salaries Payable Deferred Revenue November 30 Debit Credit $2,000 8,000 $11,000 3,000 eBook Hint The following information is known for the month of December 1. Purchases of supplies during December total $4,500. Supplies on hand at the end of December equal $3,500. 2. No insurance payments are made in December. Insurance cost is $2,000 per month 3. November salaries payable of $11,000 were paid to employees in December. Additional salaries for December owed at the end of the year are $16,000. 4.On November 1, a tenant paid Golden Eagle $4,500 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount Print Merences Required: Show the adjusting entries that were made for supplies, prepaid insurance, salaries payable, and deferred revenue on December 31 (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Record the adjusting entry for supplies on December 31 Note: Enter debits before credits

Answer 1

Answer

	Adjusted Journal Entries on December 31
		Amount in $
	Particulars	Debit	Credit
a.	Supplies expense	3,000.00
	Supplies		3,000.00
	(being adjust for supplies used)
b.	Insurance expense	2,000.00
	Prepaid expense		2,000.00
	(being adjust for Prapaid Insurance)
c.	Salaries Expense	16,000.00
	Salaries Payable		16,000.00
	(being adjust for salaries payable)
d.	Deferred Revenue	1,500.00
	Service Revenue		1,500.00
	(being adjust for accrued rent)
Working Notes
			Amount in $
a	For Supplies account
	Supplies Nov. 30		2,000.00
	Add: Purchase of supplies		4,500.00
	Less: Supplies on Dec. 31		3,500.00
	Adjusted Supplies		3,000.00
b	For Insurance account
	Prepaid Insurance on Nov. 30		8,000.00
	Add: additional insurance purchased		-
	Less: Prepaid insurance on dec. 31		6,000.00
	Adjusted insurance		2,000.00
c	For Salaries account
	Salaries Payable on Nov. 30		11,000.00
	Less: salaries Paid in Dec.		11,000.00
			-
	Salaries Payable on Dec. 31		16,000.00
	Adjusted Salaries		16,000.00
d	For Deffered Revenue
	Deffered Revenue on Nov. 30		3,000.00
	Add: Advance in December		-
	Less: Deffered revenue on dec. 31		1,500.00
	Adjusted Deffered revenue		1,500.00