Question Completion:
The December 31, 2018, unadjusted trial balance for Demon Deacons Corporation is presented below.
Accounts Debit Credit
Cash $ 8,100
Accounts Receivable 13,100
Prepaid Rent 4,920
Supplies 2,100
Deferred Revenue $ 1,100
Common Stock 11,000
Retained Earnings 4,100
Service Revenue 37,520
Salaries Expense 25,500
Total $ 53,720 $ 53,720
Use the following additional information to prepare the adjusted Trial Balance.
Answer:
Demon Deacons Corporation
Adjusted Trial Balance
As of December 31, 2018
Accounts Debit Credit
Cash $ 8,100
Accounts Receivable 13,100
Prepaid Rent 3,280
Supplies 610
Deferred Revenue $ 825
Common Stock 11,000
Retained Earnings 4,100
Salaries Payable 700
Service Revenue 37,795
Rent Expense 1,640
Salaries Expense 26,200
Supplies Expense 1,490
Total $ 54,420 $ 54,420
Explanation:
a) Data and Analysis:
a. Rent Expense $1,640 Prepaid Rent, $1,640 ($4,920 * 2/6) rent from November 1, 2018, to April 30, 2019.
b. Deferred Revenue, $275 Service Revenue $275
c. Salaries Expense $700 Salaries Payable $700
d. Supplies Expense $1,490 Supplies $1,490
Accounts Debit Credit
Cash $ 8,100
Accounts Receivable 13,100
Prepaid Rent 4,920 - 1,640 = 3,280
Supplies 2,100 - 1,490 = 610
Deferred Revenue $ 1,100 -275 = 825
Common Stock 11,000
Retained Earnings 4,100
Salaries Payable 700
Service Revenue 37,520 + 275 = 37,795
Rent Expense 1,640
Salaries Expense 25,500 + 700 = 26,200
Supplies Expense 1,490
Total $ 53,720 $ 53,720
