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The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 3 and December 31, 2016, trial balances contained the following account
The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 3 and December 31, 2016, trial balances contained the following account information Nov. 30 Dec. 31 Dr. 3,300 7,800 Cr. Dr. 4,800 5,400 Cr Supplies Prepaid insurance Salaries and wages payable Deferred rent revenue 9,000 5,600 16,800 2,800 The following information also is known: a. The December income statement reported $3,800 in supplies expense. b. No insurance payments were recorded in December. c. $19,000 was paid to employees during December for salaries and wages. d. On November 1,2016, a tenant paid Righter $8,400 in advance rent for the period November throug January. Deferred rent revenue was credited. Required: 1. What was the cost of supplies purchased during December? Supplies 3,300 Beg. Bal End. Bal 2. What was the adjusting entry recorded at the end of December for prepaid insurance? Prepaid Insurance Beg. Bal. End. Bal
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