Question

Exercise 3-7A Record adjusting entries (LO3-3) 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 $1,950 7,800 $10,900 2,900 The following information is known for the month of December: 1. Purchases of supplies during December total $4,400. Supplies on hand at the end of December equal $3,450 2. No insurance payments are made in December. Insurance cost is $1,950 per month 3. November salaries payable of $10,900 were paid to employees in December. Additional salaries for December owed at the end of the year are $15,900, 4. On November 1, a tenant paid Golden Eagle $4,350 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount. 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.) SH! View transaction list View journal entry worksheet Prev 1 of 3 Next >

Answer 1

1]	Supplies expense [1950+4400-3450]	$               2,900
	Supplies		$              2,900
2]	Insurance expense	$               1,950
	Prepaid insurance		$              1,950
3]	Salaries expense	$             15,900
	Salaries payable		$            15,900
4]	Deferred revenue [2900/2]	$               1,450
	Rent revenue		$              1,450