The December $31,2024,$ unadjusted account balances for Demon Deacons Corporation are presented below.

Accounts Balance

Cash $$9,900$

Accounts Receivable $14,900$

Prepaid Rent $7,080$

Supplies $3,900$

Deferred Revenue $2,900$

Common Stock $10,000$

Retained Earnings $5,900$

Service Revenue $51,480$

Salaries Expense $34,500$

At year$-$end, the following additional items are available:

The balance of Prepaid Rent, $$7,080,$ represents payment on October $31,2024,$ for rent from November $1,2024,$ to April $30,2025.$

The balance of Deferred Revenue, $$2,900,$ represents payment in advance from a customer. By the end of the year, $$725$ of the services have been provided.

An additional $$600$ in salaries is owed to employees at the end of the year but will not be paid until January $4,2025.$

The balance of Supplies, $$3,900,$ consists of $$1,650$ of office supplies on hand at the beginning of the year plus an additional $$2,250$ purchased throughout $2024.$ By the end of $2024,$ only $$790$ of supplies remains.

Required:

For each item, determine the accounts to be adjusted on December $31,2024,$ the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year.

Determine ending account balances of all accounts as of December $31,2024.$

Answer rating: 100% (QA)

To determine the accounts to be adjusted on December 31 2004 the amount of the adjustment and the en... View the full answer