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ACCT 382 - Week 2 - Chapter 2 Homework - Question 7

ACCT 382 - Week 2 - Chapter 2 Homework - Question 7
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ACCT 382 - Week 2 - Chapter 2 Homework - Question 7

Question 7

The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2013, trial balances contained the following account information:

   

 

Nov. 30

Dec. 31

 

Dr.

Cr.

Dr.

Cr.

  Supplies

1,500   

 

3,000   

 

  Prepaid insurance

6,000   

 

4,500   

 

  Wages payable

 

10,000  

 

15,000  

  Unearned rent revenue

 

2,000  

 

1,000  


   The following information also is known:

a.

The December income statement reported $2,000 in supplies expense.

b.

No insurance payments were made in December.

c.

$10,000 was paid to employees during December for wages.

d.

On November 1, 2013, a tenant paid Righter $3,000 in advance rent for the period November through January. Unearned rent revenue was credited.