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The Calloway Tennis Ball Company prepares monthly financial statements for its bank. The November 30 and December 31, 2013, balance sheets contained the following account

The Calloway Tennis Ball Company prepares monthly financial statements for its bank. The November 30 and December 31, 2013, balance sheets contained the following account information:

Nov. 30 Dec. 31

Dr. Cr. Dr. Cr.

Supplies 4,000 8,000

Prepaid rent 10,000 7,000

Interest payable 7,000 4,000

Unearned rent revenue 4,500 3,000

The following information also is known:

a. The December statement of cash flows reported $6,000 in cash paid for supplies.

b. No rent payments were made in December.

c. The December income statement revealed $2,000 in interest expense.

  1. On November 1, 2013, a tenant paid Calloway $6,000 in advance rent for the period November through February. Unearned rent revenue was credited.

Required:

1. What was the amount of supplies expense that appeared in the December income statement?

2. What was the amount of rent expense that appeared in the December income statement?

  1. What was the amount of cash paid to the companys creditors for interest during December?
  2. What was the amount of rent revenue earned in December? What adjusting entry was recorded at the end of December for unearned rent?

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