Question

Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances include the following account information:
Debit (November 30) Credit (November 30) Debit (December 31) Credit (December 31)
Supplies 1,600 3,100
Prepaid Insurance 6,400 4,800
Salaries Payable 10,200 15,200
Deferred Revenue 2,200 1,100

The following information also is known:

a. Purchases of supplies in December total of $3,700.
b. No insurance payments are made in December.
c. $10,200 is paid to employees during December for November salaries.
d. On November 1, a tenant pays Golden Eagle $3,300 in advance rent for the period November through January. Deferred Revenue is credited.

Required:
Show the adjusting entries that were made for supplies, prepaid insurance, salaries payable, and deferred revenue on December 31.

Answer 1

Answer:

Please see explanations below

Explanation:

Golden Eagle company

Adjusting journal entries

December 31

1 Supplies expense a/c Dr $2,200

($1,600 + $3,700 - $3,100)

To Supplies Account $3,000

(Being supplies purchased)

2 Insurance expense a/c Dr $1,600

($6,400 - $4,800)

To Insurance prepaid A/c $1,600

(Being prepaid insurance adjusted)

3. Salary expense a/c Dr $15,200

To Salary payable A/c. $15,200

(Being Salary adjusted)

4. Unearned revenue A/c Dr $1,100

To Service revenue A/c $1,100

(Being Unearned revenue adjusted)