The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2013, trial balances contained the following account information:
| Nov. 30 | Dec. 31 | |||
| Dr. | Cr. | Dr. | Cr. | |
| Supplies | 1,500 | 3,000 | ||
| Prepaid insurance | 6,000 | 4,500 | ||
| Wages payable | 10,000 | 15,000 | ||
| Unearned rent revenue | 2,000 | 1,000 | ||
| 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 wages. |
| d. | On November 1, 2013, a tenant paid Righter $3,000 in advance rent for the period November through January. Unearned rent revenue was credited. |
Explanation:
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