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Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information:
November 30 Debit Credit $2,000 Supplies Prepaid Insurance Salaries Payable 8,000 $11,000 Deferred Revenue 3,000
The following information is known for the month of December:
1. Purchases of supplies during December total $4,500. Supplies on hand at the end of December equal $3,500.
2. No insurance payments are made in December. Insurance cost is $2,000 per month.
3. November salaries payable of $11,000 were paid to employees in December. Additional salaries for December owed at the end of the year are $16,000.
4. On November 1, a tenant paid Golden Eagle $4,500 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount.
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