Question

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 Revenue Common Stock Retained Earnings Service Revenue Salaries Expense Debit $ 8,800 13,800 5,760 2,800 $ 1.800 10.000 4.300 43, 560 29,000 660,160 $60,160 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $5,760, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022. 2. The balance of Deferred Revenue, $1,800, represents payment in advance from a customer. By the end of the year, $450 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, $2,800, represents the amount of office supplies on hand at the beginning of the year of $1.100 plus an additional $1.700 purchased throughout 2021. By the end of 2021, only $680 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 (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. Do not round intermediate calculations.)

Answer 1

Credit Date Dec. 31 Debit 1,920 1,920 Dec. 31 450 General Journal Rent Expense ($5,760* 2/6) Prepaid Rent Deferred Revenue Service Revenue Salaries Expense Salaries Payable Supplies Expense Supplies 450 Dec. 31 600 $ 600 Dec. 31 2,120 $ 2,120 Supplies Expense = Beginning Supplies + Supplies Purchased - Ending Supplies Supplies Expense = $1,100 + $1,700 - $680 Supplies Expense = $2,120