The December 31, 2024, unadjusted trial balance for Demon Deacons Corporation is presented below. Accounts Cash Accounts Receivable. Prepaid Rent Supplies Deferred Revenue Common Stock: Retained Earnings Service Revenue Salaries Expense Debit $8,900 13,900 5,880 2,900 Credit $1,900 12,000 4,900 42,280 29,500 $61,080- $61,080 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $5,880, represents payment on October 31, 2024, for rent from November 1, 2024, to April 30, 2025. 2. The balance of Deferred Revenue, $1,900, represents payment in advance from a customer. By the end of the year, $475 of the services have been provided. 3. An additional $500 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2025. 4. The balance of Supplies, $2,900, represents the amount of office supplies on hand at the beginning of the year of $1,150 plus an additional $1,750 purchased throughout 2024. By the end of 2024, only $690 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.
The December 31, 2024, unadjusted trial balance for Demon Deacons Corporation is presented below. Accounts Cash Accounts Receivable. Prepaid Rent Supplies Deferred Revenue Common Stock: Retained Earnings Service Revenue Salaries Expense Debit $8,900 13,900 5,880 2,900 Credit $1,900 12,000 4,900 42,280 29,500 $61,080- $61,080 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $5,880, represents payment on October 31, 2024, for rent from November 1, 2024, to April 30, 2025. 2. The balance of Deferred Revenue, $1,900, represents payment in advance from a customer. By the end of the year, $475 of the services have been provided. 3. An additional $500 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2025. 4. The balance of Supplies, $2,900, represents the amount of office supplies on hand at the beginning of the year of $1,150 plus an additional $1,750 purchased throughout 2024. By the end of 2024, only $690 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The December 31, 2024, unadjusted trial balance for Demon Deacons Corporation is presented below.
Accounts
Cash
Accounts Receivable.
Prepaid Rent
Supplies
Deferred Revenue
Common Stock:
Retained Earnings
Service Revenue
Salaries Expense
Debit
$8,900
13,900
5,880
2,900
Credit
$1,900
12,000
4,900
42,280
29,500
$61,080- $61,080
At year-end, the following additional information is available:
1. The balance of Prepaid Rent, $5,880, represents payment on October 31, 2024, for rent from November 1, 2024, to April 30, 2025.
2. The balance of Deferred Revenue, $1,900, represents payment in advance from a customer. By the end of the year, $475 of the
services have been provided.
3. An additional $500 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2025.
4. The balance of Supplies, $2,900, represents the amount of office supplies on hand at the beginning of the year of $1,150 plus an
additional $1,750 purchased throughout 2024. By the end of 2024, only $690 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.
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