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Screenshot (76).png indicate the amount and the direction of effects

of the adjusting entry on the element of the balance sheet and income statement.

Screenshot (76).png

flhe Effort-mg infomarion appiies to the questions 0925,033ch Dela m] Trotman‘s Variety Store is completing the accounting process for the current yearjust ended, December 31. The transactions during the year have been journalized and posted- The following data with respect to adjusting entries are
available: I‘DD. f. g. . Wages eamed by employees during December, unpaid and unrecorded at December 31, amounted to $3,300. The last payroll was December 28; the next payroll will be January 6. . Office supplies on hand at January 1 of the current year totaled $520. Office supplies purchased and debited to Office Supplies during the year amounted to $600. The year-end count showed $325 of supplies on hand. . One-fourth of the basement space is rented to Kathy's Specialty Shop for $550 per month, payable monthly. At the end of the current year, the rent for November and December had not been collected or recorded. Collection is
expected in January of the next year. . The store used delivery equipment all year that cost $70,000; $11,800 was the estimated annual depreciation.
. On July 1 of the current year, a two—year insurance premium amounting to $3,120 was paid in cash and debited in full to Prepaid Insurance. Coverage began on July1 of the current year. The remaining basement of the store is rented for $2,100 per month to another merchant, M. Carlos, Inc. Carlos sells
compatible, but not competitive, merchandise. On November1 of the current year, the store collected six months‘
rent in the amount of $12,600 in advance from Cartos; it was credited in full to Unearned Rent Revenue when
collected- Trotman's Variety Store operates a repair shop to meet its own needs. The shop also does repairs for M. Carlos. At
the end of the current year, Carlos had not paid $860 for completed repairs. This amount has not yet been recorded
as Repair Shop Revenue. Collection is expected during January of next year.

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