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Exercise 3-14A Prepare an adjusted trial balance (LO3-3, 3-4)

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The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.

Accounts	Debit				Credit
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
	$	70,280			$	70,280

At year-end, the following additional information is available:

1. The balance of Prepaid Rent, $7,080, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022.

2. 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.

3. An additional $600 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2022.

4. The balance of Supplies, $3,900, represents the amount of office supplies on hand at the beginning of the year of $1,650 plus an additional $2,250 purchased throughout 2021. By the end of 2021, only $790 of supplies remains.

Exercise 3-14A Part 2

2. Prepare an adjusted trial balance as of December 31, 2021.