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: November
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances include the following account information:
November 30December 31
DebitCreditDebitCreditSupplies1,0002,500Prepaid Insurance4,0003,000Salaries Payable9,00014,000Deferred Revenue1,000500
The following information also is known:
a. Purchases of supplies in December total $2,500.
b. No insurance payments are made in December.
c. $9,000 is paid to employees during December for November salaries.
d. On November 1, a tenant pays Golden Eagle $1,500 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.
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