The Righter Shoe Store Company prepares monthly financial
statements for its bank. The November 30 and December 31, 2018,
trial balances contained the following account information:
Nov. 30 Dec. 31
Dr. Cr. Dr. Cr.
1,70 3,20
Supplies
0 0
6,20 4,60
Prepaid insurance
0 0
11,00 15,20
Salaries and wages payable
0 0
Deferred rent revenue 2,400 1,200
The following information also is known:
a. The December income statement reported $2,200 in
supplies expense.
b. No insurance payments were made in December.
c. $11,000 was paid to employees during December for
salaries and wages.
d. On November 1, 2018, a tenant paid Righter $3,600 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.
statements for its bank. The November 30 and December 31, 2018,
trial balances contained the following account information:
Nov. 30 Dec. 31
Dr. Cr. Dr. Cr.
1,70 3,20
Supplies
0 0
6,20 4,60
Prepaid insurance
0 0
11,00 15,20
Salaries and wages payable
0 0
Deferred rent revenue 2,400 1,200
The following information also is known:
a. The December income statement reported $2,200 in
supplies expense.
b. No insurance payments were made in December.
c. $11,000 was paid to employees during December for
salaries and wages.
d. On November 1, 2018, a tenant paid Righter $3,600 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.
