Problem
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances include the following account information:
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November 30
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December 31
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Debit
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Credit
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Debit
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Credit
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Supplies
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2,000
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3,500
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|
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Prepaid Insurance
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8,000
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|
6,000
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|
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Salaries Payable
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11,000
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16,000
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|
Unearned Revenue
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3,000
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1,500
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The following information also is known:
1. Purchases of supplies in December total $4,500.
2. No insurance payments are made in December.
3. $11,000 is paid to employees during December for November salaries.
4. On November 1, a tenant pays Golden Eagle $4,500 in advance rent for the period November through January. Unearned Revenue is credited.
Required:
Show the adjusting entries that were made for supplies, prepaid insurance, salaries payable, and unearned revenue on December 31.