Question

Exercise 3-12A Record year-end adjusting entries (LO3-3) Below are transactions for Wolverine Company during 2021 1. On December 1, 2021, Wolverine receives $2,200 cash from a company that is renting office space from Wolverine. The payment. representing rent for December and January, is credited to Deferred Revenue. 2. Wolverine purchases a one year property insurance policy on July 1, 2021, for $11,040. The payment is debited to Prepaid Insurance for the entire amount. 3. Employee salaries of $1,200 for the month of December will be paid in early January 2022 4. On November 1, 2021, the company borrows $6.000 from a bank. The loan requires principal and interest at 12% to be paid on October 30, 2022 5. Office supplies at the beginning of 2021 total $820. On August 15, Wolverine purchases an additional $1,600 of office supplies, debiting the Supplies account. By the end of the year. $320 of office supplies remains. Required: Record the necessary adjusting entries at December 31, 2021, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Do not round Intermediate calculations.) View transaction ist Journal entry worksheet On December 1, 2021, Wolverine receives $2,200 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue Record the adjusting entry for deferred revenue at its year-end of December 31. Enter debits before credits Date General Journal Debit Credit December 31

Answer 1

Adjusting entry

Date	General Journal	Debit	Credit
Dec 31	Deferred revenue (2200/2)	1100
	Rent revenue		1100
Dec 31	Insurance expense (11040*6/12)	5520
	Prepaid insurance		5520
Dec 31	Salaries expense	1200
	Salaries payable		1200
Dec 31	Interest expense (6000*12%*2/12)	120
	Interest payable		120
Dec 31	Supplies expense (820+1600-320)	2100
	Supplies		2100