The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below. Accounts Debit $ 9,400 14,400 6,480 3,400 Credit Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings $ 2,400 11,000 5,400 46,880 Service Revenue Salaries Expense 32,000 $65,680 $65,680 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $6,480, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022. 2. The balance of Deferred Revenue, $2,400, represents payment in advance from a customer. By the end of the year, $600 of the services have been provided. 3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2022. 4. The balance of Supplies, $3,400, represents the amount of office supplies on hand at the beginning of the year of $1,400 plus an additional $2,000 purchased throughout 2021. By the end of 2021, only $740 of supplies remains.
The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below. Accounts Debit $ 9,400 14,400 6,480 3,400 Credit Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings $ 2,400 11,000 5,400 46,880 Service Revenue Salaries Expense 32,000 $65,680 $65,680 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $6,480, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022. 2. The balance of Deferred Revenue, $2,400, represents payment in advance from a customer. By the end of the year, $600 of the services have been provided. 3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2022. 4. The balance of Supplies, $3,400, represents the amount of office supplies on hand at the beginning of the year of $1,400 plus an additional $2,000 purchased throughout 2021. By the end of 2021, only $740 of supplies remains.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. Prepare an adjusted trial balance as of December 31, 2021.
DEMON DEACONS CORPORATION
Adjusted Trial Balance
December 31, 2021
Accounts
Debit
Credit
Cash
9,400
Accounts Receivable
14,400
Prepaid Rent
Supplies
Deferred Revenue
Salaries Payable
Common Stock
Retained Earnings
Service Revenue
Salaries Expense
Rent Expense
2,160
Supplies Expense
Totals
$
25,960
$
Transcribed Image Text:The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.
Accounts
Debit
Credit
$ 9,400
14,400
6,480
3,400
Cash
Accounts Receivable
Prepaid Rent
Supplies
Deferred Revenue
Common Stock
Retained Earnings
$ 2,400
11,000
5,400
46,880
Service Revenue
Salaries Expense
32,000
$65,680
$65,680
At year-end, the following additional information is available:
1. The balance of Prepaid Rent, $6,480, represents payment on October 31, 2021, for rent from November 1, 2021, to
April 30, 2022.
2. The balance of Deferred Revenue, $2,400, represents payment in advance from a customer. By the end of the
year, $600 of the services have been provided.
3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4,
2022.
4. The balance of Supplies, $3,400, represents the amount of office supplies on hand at the beginning of the year of
$1,400 plus an additional $2,000 purchased throughout 2021. By the end of 2021, only $740 of supplies remains.
Expert Solution
Step 1 Introduction
Adjustment entry: Adjustment entries are the journal entries made at the end of an accounting period or at any time financial statements are to be prepared to bring about a proper matching of revenue and expenses. It is affected on the one real account and at least one nominal account. Further, it should be noted that not all entries that the company records at end of an accounting period are adjusting entries.
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