The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2024, trial balances contained the following account information: November 30 December 31 Debit Credit Debit Credit Supplies 1,500 3,000 Prepaid insurance 6,000 4,500 Salaries payable 10,000 15,000 Deferred rent revenue 2,000 1,000 The following information also is known: The December income statement reported $2,000 in supplies expense. No insurance payments were made in December. $10,000 was paid to employees during December for salaries. On November 1, 2024, a tenant paid Righter $3,000 in advance rent for the period November through January. Deferred rent revenue was credited at the time cash was received. Required: Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30. Using the above information, prepare the adjusting entries Righter recorded for the month of December
The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2024, trial balances contained the following account information: November 30 December 31 Debit Credit Debit Credit Supplies 1,500 3,000 Prepaid insurance 6,000 4,500 Salaries payable 10,000 15,000 Deferred rent revenue 2,000 1,000 The following information also is known: The December income statement reported $2,000 in supplies expense. No insurance payments were made in December. $10,000 was paid to employees during December for salaries. On November 1, 2024, a tenant paid Righter $3,000 in advance rent for the period November through January. Deferred rent revenue was credited at the time cash was received. Required: Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30. Using the above information, prepare the adjusting entries Righter recorded for the month of December
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2024,
| November 30 | December 31 | |||
|---|---|---|---|---|
| Debit | Credit | Debit | Credit | |
| Supplies | 1,500 | 3,000 | ||
| Prepaid insurance | 6,000 | 4,500 | ||
| Salaries payable | 10,000 | 15,000 | ||
| Deferred rent revenue | 2,000 | 1,000 |
The following information also is known:
- The December income statement reported $2,000 in supplies expense.
- No insurance payments were made in December.
- $10,000 was paid to employees during December for salaries.
- On November 1, 2024, a tenant paid Righter $3,000 in advance rent for the period November through January. Deferred rent revenue was credited at the time cash was received.
Required:
-
Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30.
-
Using the above information, prepare the
adjusting entries Righter recorded for the month of December
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