Reference no: EM132825895
Question - The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2021, trial balances contained the following account information:
Nov. 30 Dec. 31
Dr. Cr. Dr. Cr.
Supplies 2,100 3,600
Prepaid insurance 6,600 4,800
Salaries payable 13,000 15,600
Deferred rent revenue 3,200 1,600
The following information also is known:
-The December income statement reported $2,600 in supplies expense.
-No insurance payments were made in December.
-$13,000 was paid to employees during December for salaries.
-On November 1, 2021, a tenant paid Righter $4,800 in advance rent for the period November through January. Deferred rent revenue was credited.
Required -
1. Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30.
2. Using the above information, prepare the adjusting entries Righter recorded for the month of December.