golden eagle company has the following balances at the end of november: supplies: debit $1,150 credit $4,600…

golden eagle company has the following balances at the end of november: supplies: debit $1,150 credit $4,600 prepaid insurance salaries payable deferred revenue the following information is known for the month of december: 1. purchases of supplies for cash during december were $2,800. supplies on hand at the end of december equal $2,650. 2. no insurance payments are made in december. insurance expired in december is $1,150. 3. november salaries payable of $9,300 were paid to employees in december. additional salaries for december owed at the end of the year are $14,300. 4. on december 1, golden eagle received $1,950 from a customer for rent for the period december through february. by the end of december, one - month of rent has been provided. required: for each item, (a) record any transaction during the month of december, and (b) prepare the related december 31 year - end adjusting entry. note: if no entry is required for a particular transaction or event, select \no journal entry required\ in the first account field.

golden eagle company has the following balances at the end of november: supplies: debit $1,150 credit $4,600 prepaid insurance salaries payable deferred revenue the following information is known for the month of december: 1. purchases of supplies for cash during december were $2,800. supplies on hand at the end of december equal $2,650. 2. no insurance payments are made in december. insurance expired in december is $1,150. 3. november salaries payable of $9,300 were paid to employees in december. additional salaries for december owed at the end of the year are $14,300. 4. on december 1, golden eagle received $1,950 from a customer for rent for the period december through february. by the end of december, one - month of rent has been provided. required: for each item, (a) record any transaction during the month of december, and (b) prepare the related december 31 year - end adjusting entry. note: if no entry is required for a particular transaction or event, select \no journal entry required\ in the first account field.

Answer

Explanation:

Step1: Supplies Adjustment

The supplies account had a debit - balance of $1,150 at the end of November. Purchases of supplies during December were $2,800. Supplies on hand at the end of December were $2,650. The supplies used is calculated as the beginning balance plus purchases minus the ending balance. $1,150 + 2,800-2,650=1,300$. The adjusting entry is: Debit Supplies Expense $1,300 Credit Supplies $1,300

Step2: Insurance Adjustment

Insurance payments of $1,150 were made in December and insurance expired in December is $1,150. The adjusting entry is: Debit Insurance Expense $1,150 Credit Pre - paid Insurance $1,150

Step3: Salaries Adjustment

Salaries payable at the end of the year are $14,300. The adjusting entry is: Debit Salaries Expense $14,300 Credit Salaries Payable $14,300

Step4: Rent Adjustment

On December 1, Golden Eagle received $1,950 from a customer for rent for the period December through February. One - month rent is $1,950/3 = 650$. The adjusting entry is: Debit Deferred Revenue $650 Credit Rent Revenue $650

Answer:

  1. Supplies Adjusting Entry: Debit: Supplies Expense $1,300 Credit: Supplies $1,300
  2. Insurance Adjusting Entry: Debit: Insurance Expense $1,150 Credit: Pre - paid Insurance $1,150
  3. Salaries Adjusting Entry: Debit: Salaries Expense $14,300 Credit: Salaries Payable $14,300
  4. Rent Adjusting Entry: Debit: Deferred Revenue $650 Credit: Rent Revenue $650