The December 31, 2015, unadjusted trial balance for Demon Deacons Corporation is presented below.
Accounts Debit Credit
Cash $ 8,000
Accounts Receivable 13,000
Prepaid Rent 4,800
Supplies 2,000
Deferred Revenue $ 1,000
Common Stock 12,000
Retained Earnings 4,000
Service Revenue 35,800
Salaries Expense 25,000
$ 52,800
$ 52,800
At year-end, the following additional information is available:
A. The balance of Prepaid Rent, $4,800, represents payment on October 31, 2015, for rent from November 1, 2015, to April 30, 2016.
B. The balance of Unearned Revenue, $1,000, represents payment in advance from a customer. By the end of the year, $250 of the services have been provided.
C. An additional $500 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, $2,000, represents the amount of office supplies on hand at the beginning of the year of $700 plus an additional $1,300 purchased throughout 2015. By the end of 2015, only $600 of supplies remains.
Required:
1. Update account balances for the year-end information by recording any necessary adjusting entries. No prior adjustments have been made in 2015.