Question

Exercise 3-14A Prepare an adjusted trial balance (L03-3, 3-4) (The following information applies to the questions displayed below.) The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below. Credit Debit $ 8,100 13,100 4,920 2,100 Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense $ 1,100 11,000 4,100 37,520 25,500 $53, 720 $53, 720 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $4,920, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022. 2. The balance of Deferred Revenue, $1,100, represents payment in advance from a customer. By the end of the year, $275 of the services have been provided 3. An additional $700 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, $2,100, represents the amount of office supplies on hand at the beginning of the year of $750 plus an additional $1,350 purchased throughout 2021. By the end of 2021, only $610 of supplies remains.

Answer 1

1)
Demon Deacons
Adjusting Journal Entries
December 31st,2021
	General,Journal	Debit	Credit
1)	Rent Expense($4920*2/6)	$       1,640.00
	To Prepaid Rent		$       1,640.00
	(Being amount of Rent Expense)
2)	Deferred Revenue	$           275.00
	To Service Revenue		$           275.00
	(Being amount of Service Revenue)
3)	Salaries Expense	$           700.00
	To Salaries Payable		$           700.00
	(Being amount of Salaries due)
4)	Supplies Expenses($2100-$610)	$       1,490.00
	To Supplies		$       1,490.00
	(Being amount of Supplies Expense)
1)	Rent for 6 months,November 2021 to April 2022, so two months rent expired on December 31st,2021
2)	Deferred revenue of $1100 ,only $275 service has been provided during December 31st,2021.
3)	Salaries owed but not paid -$700
4)	Beginning Supplies + Supplies Purchased-Supplies in hand=Supplies Expense=($750+$1350-$610)