2016. The trial balance at December 31, 2017, before adjustments, is as follows

Question

2016. The trial balance at December 31, 2017, before adjustments, is as follows Skjeveland Supply Inc. adjusts and closes its accounts at the end of December Credit Debit $24,000 27,000 56,000 2,200 36,000 Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation: Equipment Accounts Payable Unearned Ticket Revenues Capital Stock Retained Earnings Dividends Salaries Expense Insurance Expense 12,000 21,000 38,000 98,600 1,000 17,000 6,400 $169.600 S169.600 The following information relates to December 31 adjustments: Before the adjustment, the amount of office supplies was $2,200 and now the office supplies on hand on December 31 is $750. You need to make adjusting entry to record the expense for December. 1. The useful life of the $36,000 equipment was estimated to be 6 years (straight line method). You need to make adjusting entry to record the depreciation for the month of December. 2. 3. At the beginning of December 2017, the unearned ticket revenues stand at $21,000, $12,000 worth of the tickets for December 2017's games were used. You need to record the ticket revenues for the month of December. 4. Salaries earned by Skjeveland Supply employees during the month of December but the amount of $5,500 for salaries will be paid in January. You need to record the salary expense for S5,500 for December 2016 (to pay in January).

Explanation / Answer

Adjusting entries a Supplies expense 1450 (2200-750)                Supplies 1450 b Depreciation expense 6000 (36000*1/6)            Accumulated depreciation - equipment 6000 c Unearned ticket revenue 12000               Ticket revenue 12000 d Salaries expense 5500               Salaries payable 5500 e Rent expense 7000 (63000/9)               Prepaid rent 7000

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