Answer:
Golden Eagle Company
Adjusting Journal Entries:
December 31:
Debit Supplies Expenses $1,200
Credit Supplies $1,200
To record adjusting entry for supplies used.
Debit Insurance Expenses $1,100
Credit Prepaid Insurance $1,100
To record insurance expense for the month.
Debit Salaries Expense $14,200
Credit Salaries Payable $14,200
To record accrued salaries for the month.
Debit Deferred Revenue $600
Credit Rent Revenue $600
To record the rent revenue for the month.
Explanation:
a) Supplies:
Beginning Balance = Â $1,100
Purchases         $2,700
Total available      $3,800
Ending balance    $2,600
Supplies Expenses $1,200
b) Prepaid Insurance:
Beginning balance = $4,400
Insurance Expense   $1,100
Ending balance     $3,300
c) Salaries Payable:
Beginning balance = $9,200
Cash payment     ($9,200)
Ending balance = Â Â $14,200
Salaries Expense = $14,200
d) Deferred Revenue:
Beginning balance = $1,200
Rent Revenue $600
Ending balance $600
e) Adjusting journal entries are made at the end of the accounting period. Â They help to reconcile the accounts from a cash basis to the accrual basis. Â With this basis, accrued revenue and expenses, advance payment of expenses, advance receipt of revenue, and depreciation charges are adjusted to reflect in the accounts the period affected by transactions. Â The aim is to match expenses and revenue to each other and to the period that generated the revenue or incurred the expense.
