Exercise 3-14 (Algo) Prepare an adjusted trial balance (LO3-3, 3-4)

The December 31, 2024, unadjusted trial balance for Demon Deacons Corporation is presented below.

Accounts	Debit	Credit
Cash	$8,700
Accounts Receivable	13,700
Prepaid Rent	5,640
Supplies	2,700
Deferred Revenue		$1,700
Common Stock		11,000
Retained Earnings		4,700
Service Revenue		41,840
Salaries Expense	28,500
	$59,240	$59,240

At year-end, the following additional information is available:

The balance of Prepaid Rent, $5,640, represents payment on October 31, 2024, for rent from November 1, 2024, to April 30, 2025.

The balance of Deferred Revenue, $1,700, represents payment in advance from a customer. By the end of the year, $425 of the services have been provided.

An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2025.

The balance of Supplies, $2,700, represents the amount of office supplies on hand at the beginning of the year of $1,050 plus an additional $1,650 purchased throughout 2024. By the end of 2024, only $670 of supplies remains.

Required:

1. Update account balances for the year-end information by recording any necessary adjusting entries. No prior adjustments have been made in 2024. 2. Prepare an adjusted trial balance as of December 31, 2024.