Golden Eagle Company prepares monthly financial statements for its bank. The Nov

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:          
  

    

The following information also is known:
a. Purchases of supplies in December total $3,100.
b. No insurance payments are made in December.
c. $9,600 is paid to employees during December for November salaries.
d. On November 1, a tenant pays Golden Eagle $2,400 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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
  

November 30 December 31 Debit Credit Debit Credit   Supplies 1,300 2,800   Prepaid Insurance 5,200 3,900   Salaries Payable 9,600 14,600   Deferred Revenue 1,600 800

Explanation / Answer

Adjusting entries: Transaction Accounts title and explanations Debit $ Credit $ a. Supplies expense Account Dr. 1600     Supplies Account (1300+3100-2800) 1600 b. Insurance expense Account Dr. 1300    Prepaid insurance Account (5200-3900) 1300 c. Salaries expense Account Dr. 14600     Salaries payable Account 14600 d. Deferred Revenue Account Dr. 800      Rental revenue Account 800

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