What was the cost of supplies purchased


Response to the following problem:

The following information also is known:

a. The December income statement reported $2,000 in supplies expense.

b. No insurance payments were made in December.

c. $10,000 was paid to employees during December for salaries and wages.

d. On November 1, 2016, a tenant paid Righter $3,000 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?

3. What was the adjusting entry recorded at the end of December for accrued salaries and wages?

4. What was the amount of rent revenue recognized in December? What adjusting entry was recorded at the end of December for deferred rent?

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Cost Accounting: What was the cost of supplies purchased
Reference No:- TGS02090424

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