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The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and...

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 1,900 3,400
Prepaid insurance 6,400 4,700
Salaries payable 12,000 15,400
Deferred rent revenue 2,800 1,400


The following information also is known:

  1. The December income statement reported $2,400 in supplies expense.
  2. No insurance payments were made in December.
  3. $12,000 was paid to employees during December for salaries.
  4. On November 1, 2021, a tenant paid Righter $4,200 in advance rent for the period November through January. Deferred rent revenue was credited.

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.

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Expert Solution

ekkarill92 answered 4 months ago
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