Question: The December 31 2015 unadjusted trial balance for Demon Deacons

The December 31, 2015, unadjusted trial balance for Demon Deacons Corporation is presented below.

At year-end, the following additional information is available:
a. The balance of Prepaid Rent, $7,200, represents payment on October 31, 2015, for rent from November 1, 2015, to April 30, 2016.
b. The balance of Unearned Revenue, $3,000, represents payment in advance from a customer. By the end of the year, $750 of the services have been provided.
c. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2016.
d. The balance of Supplies, $4,000, represents the amount of office supplies on hand at the beginning of the year of $1,700 plus an additional $2,300 purchased throughout 2015. By the end of 2015, only $800 of supplies remains.

1. Update account balances for the year-end information by recording any necessary adjusting entries. No prior adjustments have been made in 2015.
2. Prepare an adjusted trial balance as of December 31,2015.
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  • CreatedJuly 15, 2014
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