The righter shoe store company prepares monthly financial statements for its bank. the november 30 and december 31, 2016, trial balances contained the following account information:
nov. 30 dec. 31
dr. cr. dr. cr.
supplies 3,100 4,600
prepaid insurance 7,600 5,300
salaries and wages payable 18,000 16,600
deferred rent revenue 5,200 2,600
the following information also is known:
(a) the december income statement reported $3,600 in supplies expense.
(b) no insurance payments were recorded in december.
(c) $18,000 was paid to employees during december for salaries and wages.
(d) on november 1, 2016, a tenant paid righter $7,800 in advance rent for the period november through january. deferred rent revenue was credited.
required:
(1) what was the cost of supplies purchased during december?
(2) what was the adjusting entry recorded at the end of december for prepaid insurance?